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Page 1: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies
Page 2: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

The JFE Group pursues business activities in harmony with the environment in accordance with the concepts of “coexistence with the global environment” and “environmental improvement” in its Corporate Standards of Business and Environmental Philosophy.

We will enlist all of the Group’s resources in addressing environmental issues under the Medium-Term Business Plan, starting from the fiscal year ending on March 31, 2010. In undertaking initiatives such as promoting energy-efficiency measures, reducing or transforming chemical substances with high global-warming potential, and introducing new technologies that lower our environmental impact, we aim to reduce our greenhouse gas emissions and achieve the Voluntary Action Plan reduction targets established by Nippon Keidanren. In addition, we are committed to lowering greenhouse gases to international levels by, for example, providing proprietary cutting-edge, energy-efficient technologies overseas.

We also strive to promote biodiversity through the development of our technologies, such as creating sea-grass beds and restoring coral reefs by using steel byproducts, as well as improving ballast water treatment methods to protect marine ecosystems.

The JFE Group has always developed and provided products and technologies in harmony with the environment. For example, our high-performance steel products make cars lighter, our technologies increase the efficiency of transformers and motors, and our recycling operations reuse resources. Looking ahead, the JFE Group will improve its operations and activities, fulfilling its responsibilities as a corporate citizen to protect the environment and the earth.

Shinichi OkadaSenior Vice PresidentJFE Holdings, Inc.

Coordinating Corporate Growth, Environmental Conservation

Environmental Philosophy

The JFE Group considers improving the global environment a management priority and promotes business

operations in harmony with the environment. These efforts aim to create a prosperous society.

Environmental Policy

1. To reduce the environmental impact of all business operations

2. To make contributions through technologies and products

3. To make contributions through conservation of resources and energy

4. To promote communication with society

5. To promote international cooperation

Message from Senior Management

� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 3: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Message from Senior Management

Contents

Special Feature: JFE Steel’s Activities to Prevent Global Warming

Environmental Management System

Communication with Society Related to the Environment

Environmental Accounting

Reducing Environmental Loads in Business Activities

Priority Environmental Targets and Results

Energy/Material Flow in the Steelmaking Process

Reducing Environmental Loads in Business Activities at JFE Steel

Reducing Environmental Loads in Business Activities at JFE Engineering

Reducing Environmental Loads in Business Activities at Universal Shipbuilding

Reducing Environmental Loads in Business Activities at Kawasaki Microelectronics

Reducing Environmental Loads in Business Activities at JFE Urban Development

Reducing Environmental Loads through Products and Technologies

R&D of Environmental Conservation Technology

JFE’s Technologies Contribute to Global Environmental Protection

Recycling Technology Supporting a Sustainable Society

Restoring Marine Environments

History of Environmental Measures in JFE Group

Third-party Comments

1

2

3

11

12

13

14

15

17

19

23

25

27

28

29

30

31

37

39

41

42

Editorial PolicyThe JFE Group Environmental Sustainability Report 2009 describes the Group’s environmental protection activities for the year ended March 31, 2009, as well as the results of those activities in the business operations of JFE Holdings, Inc., which is the holding company of the JFE Group. This report was edited/prepared in accordance with the “Guidelines for Environ-mental Reports (FY 2007 edition)” issued by Japan's Ministry of the Environment and “Sustainability Reporting Guidelines 2006.” Please note that this report is disclosed only on our website. If you need a brochure(s), please print this document.*For further Group information, business descriptions, product information, and operation facilities, etc., please refer to JFE GROUP BUSINESS REPORT 2009 or our website: http://www.jfe-holdings.co.jp/en/

C h a l l e n g i n g S p i r i t

F l e x i b i l i t y

S i n c e r i t y �JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 4: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Hiroshi NishizakiVice PresidentJFE Steel Corporation

JFE Steel’s Activities to Prevent Global Warming

Message from Senior Management

—At the end of the first year of the Kyoto Protocol’s initial commitment period*�

The year ended March 31, 2009 was the first commitment period of the Kyoto Protocol.

To comply with the Japan Iron and Steel Federation’s Voluntary Action Program*2, we at JFE Steel worked continuously to improve the efficiency of our operations and facilities, develop technologies, and take other steps to help stop global warming. In the end, we came very close to achieving the Voluntary Action Program objectives.

Based on our Corporate Vision of contributing to society with the world’s most innovative technology, we will:• Pursue further development of energy-saving

technologies to fulfill the Voluntary Action Program for the first commitment period of the Kyoto Protocol;

• Help to reduce CO2 emissions for society as a whole through actions like enabling the creation of lighter automobiles with high-performance steel products;

• Engage in international transfers of energy-saving technologies to help other countries with their efforts to stop global warming; and

• Advance the development of innovative technologies to help reduce CO2 emissions on a global scale for the future.

Special Feature

� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 5: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

(PJ)*3

‘90 ‘00

2,323

‘01

2,253

‘02

2,304

‘04 ‘05‘03

2,326

‘08~’12(Target)

‘95

2,425

‘06 ‘07

2,458

2,274

(Years ended/ending March 31)

1,600

1,800

2,400

2,200

2,000

2,6002,526

2,3362,351 2,3892.7%

10%

Index(FYE March 1974 = 100)

JFE Steel

‘73

100

‘80

83

‘85

77

‘90

79

‘95

88

‘06

65

‘05

67

‘04

67

‘03

68

(Years ended March 31)

• Reduction of reheating furnace fuel• Large-scale waste heat recovery

equipmentBF top pressure recovery turbine (TRT), sintering waste heat recovery, etc.

• Process continuationContinuous casting line, continuous annealing line, etc.

‘07

64

‘08

65

History of Energy

Saving Activities

Introduction of energy saving equipment

• Waste plastics feeding into BF• Introduction of regenerative

burner• Endless rolling• City gas blowing technology for

BF• High efficiency oxygen plant

Further promotion of energy saving

• Added a new shaft furnace• Enhanced CDQ• Broader introduction of regenerative

burner• Augmentation of high efficiency

oxygen plant• BOF gas sensible heat recovery• Introduction of Super-SINTERTM

Global warming prevention measures by energy saving

Unit Energy Consumption Index

35% cut

‘73 ‘80 ‘85 ‘90 ‘95 ‘06‘05‘04‘03 ‘07 ‘08

(1973年=100とした指数)

JFEスチール100

83 77 7988

65676768

(年度)

●加熱炉燃料低減●大型排熱回収設備高炉炉頂圧発電、焼結排熱回収など

●工程連続化連続鋳造設備、連続焼鈍設備など

64 65

省エネルギーの

取り組みの推移

省エネルギー設備導入

●廃プラスチック高炉吹込●リジェネバーナー導入●エンドレス圧延●都市ガス高炉吹込技術●高効率酸素プラント

さらなる省エネルギー推進

●シャフト炉新設(’08年8月稼動)●CDQの増強(’09年3月稼動)●リジェネバーナー導入拡大●高効率酸素プラント導入拡大●転炉ガス顕熱回収●Super-SINTERTM新設

省エネルギーによる地球温暖化防止対策

原単位 35%削減

Transition of Unit Energy Consumption Index at JFE Steel

Implementing the Voluntary Action Plan from the Japan Iron and Steel Federation

*� The Kyoto Protocol’s initial commitment periodThis period for meeting the targets started from the year ended March 31, 2009, to the year ending March 31, 2013.

*� Voluntary Action Plan This plan set an objective of a 10% reduction in energy consumption on average from the year ended March 31, 2009, to the year ending

Approaches to Energy Saving and CO� Reduction

The Japan Iron and Steel Federation announced that the industry has to cut its energy consumption for the year ended March 31, 2008, by 2.7% compared with the level for the year ended March 31, 1991. As a complementary measure, the federation bought 59 million tons of carbon offsets under the Kyoto Protocol.

March 31, 2013, compared with the year ended March 31, 1991. This target assumes crude steel production of 100 million tons. This plan also aims for recycling of one million tons of plastic waste, assuming the establishment of a waste plastic collection system.

*� PJ = Petajoule (�0�5 joules). 1 PJ equals the energy derived from 25,800 kiloliters of crude oil.

Source: The Japan Iron and Steel Federation

to these efforts, we have achieved a 35% reduction in unit energy consumption during the period between the year ended March 31, 1974 and the year ended March 31, 2009, achieving world-class efficiency in energy consumption.

Since the first oil crisis, JFE Steel has actively been working towards energy saving and CO2 reduction. For example, we recover by-product gases generated in the process of iron and steel making, as well as waste heat and pressure released from the BF top pressure recovery turbine, etc. Thanks

Unit energy consumption in comparison to the year endedMarch 1974

35% cut

�JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 6: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Although crude steel production increased 13% in the year ended March 31, 2009, compared with the year ended March 31, 1991, we decreased energy consumption by 7.7% and the energy required to produce one ton of crude steel by 18%.

CO2 emissions still remain low, down 4% compared with of the emissions for the year ended March 31, 2006, when the production volume of crude steel was almost the same as for the year ended March 31, 2009.

While crude steel production increased by 13% in the year ended March 31, 2009 compared to the year ended March 31, 1991, we were able to reduce CO2 emissions by 8.9% and CO2 emissions involved in producing one ton of crude steel (unit CO2 emissions) by 19%.

The level of CO2 emissions still remains lower, a 4% decrease, when compared with that of the year ended March 31, 2006 where the production volume of crude steel was almost the same level of that of the year ended March 31, 2009.

In the first half, we have maintained a high level of production volume in response to stronger demand for high performance steel products from our customers. However, we were obliged to reduce the volume level due to the economic slowdown in the second half. As a result, compared to the level at the year ended March 31, 1991 crude steel production had increased 13% by the year ended March 31, 2009.

24

22

26

28

30

(Years ended March 31)

Unit energy consumption (GJ/t-s)

599

200

0

400

600

800

‘04‘90

666

‘05

641

‘06

677

‘07

703

‘08

615

‘08~‘12(target)

662

24.0 24.023.3 23.0 23.2

Total energy consumption (PJ)

Unit energy consumption

Total energy consumption

28.3

10%7.7%

18%

24

22

26

28

30

(年度)

エネルギー原単位(GJ/t-s)

599

200

0

400

600

800

‘04‘90

666

‘05

641

‘06

677

‘07

703

‘08

615

‘08~‘12(目標)

662

24.0 24.023.3 23.0 23.2

エネルギー消費量(PJ)

エネルギー原単位

エネルギー消費量

28.3

10%7.7%

18%

Transition of Total Energy Consumption and Unit Energy Consumption at JFE Steel (estimates)

2.00

1.90

2.10

2.30

2.20

2.40

2.50

2.60

(t-CO2/t-s)

20

30

0

10

40

50

60

70

(年度)‘04‘90

58.1

2.47

‘05

55.3

‘06 ‘07

61.2

‘08

52.9

‘08~‘12(目標)

2.092.07

2.02 2.00 1.99

(百万t)CO2排出量

CO2原単位

57.7 58.6

52.9

9%8.9%

19.4%

1.9

2.2

2.1

2.0

2.3

2.4

2.6

2.5

(t-CO2/t-s)

20

10

0

40

30

50

60

70

(Years ended/ending March 31)‘04‘90

2.47

‘05 ‘06 ‘07

61.2

‘08

52.9

‘08~‘12 (target)

2.092.07

2.02 2.00 1.99

(Millions of tons)Total CO2 emissions

8.9% 9%

19.4%

Unit CO2

emissions

57.758.1

55.3

58.6

52.9

Transition of Total Energy Origin CO� Emissions and Unit CO� Emissions at JFE Steel

20

24

28

32

3,2

‘04‘90 ‘05 ‘06

29.04

‘07 ‘08

27.65

+13%

(Millions of tons per year)

23.55

26.72

30.52

26.55

(Years ended March 31)

2,000

2,400

2,800

3,200

‘04‘90 ‘05 ‘06

2,904

‘07 ‘08

2,765

+13%

(Millions of tons per year)

2,355

2,672

3,052

2,655

(Years ended March 31)

Transition of Crude Steel Production at JFE Steel

Reductions in Energy Consumption and Unit

Achievements in CO� Emissions and Unit Emissions for the Year Ended March �009 (Estimation)

Achievements in Crude Steel Production for the Year Ended March �009

Unit CO2 emissions in comparison to the year ended March 1991

8.9% cut

Transition of Total Energy Consumption in comparison to the year ended March 1991

7.7% cut

Special Feature

5 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 7: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

World’s First Application of Super-SINTERTM Technology for Infusing Hydrogen-Based Fuel into a Sintering Machine

JFE Steel pioneered the commercial application of Super-SINTERTM, a Secondary-fuel Injection Technology for Energy Reduction, for infusing hydrogen-based fuel into a sintering furnace. We began using this technology on a commercial basis in January 2009. Super-SINTERTM technol-ogy makes the sintering process more energy efficient, thereby greatly reducing CO2 emis-sions while producing high quality sintered ore.

JFE Steel is gradually seeing the results of approximately ¥100 billion it has invested to reduce CO2 emissions and energy consumption under the Second Medium-Term Business Plan (April 2006–March 2009). Key facilities brought on-line in the year ended March 31, 2009 include:• New shaft furnace (launched in August 2008 at the

East Japan Works, Keihin)• Kurashiki CDQ (launched in March 2009 at the

West Japan Works, Kurashiki)• Expanded use of regenerative burner for reheating

furnace for heavy-gauge, hot rolled steel plate (East Japan Works, Chiba, and West Japan Works, Fukuyama)

• Expanded use of city gas infusions to blast furnaces (East Japan Works, Chiba)

• Super-SINTERTM (launched in January 2009 at the East Japan Works, Keihin)

Hydrogen-type gas main pipe

Gas blowing hood

Direction of sintering machine

Ignition furnace

Blowing branch pipe

Super-SINTERTM system

スクラップ投入

熱風+純酸素吹込

ガス回収(高炉ガス配管へ)

スクラップ溶解

連続出銑

炉径:3.4m

全高:20m

Scrap input

Hot air and pure oxygen blowing

Gas recovery (to BF gas pipe)

Scrap melting

Continuous tapping

Furnace diameter: 3.4 m

Height: 20 m

Scrap input

Hot-air and pure oxygen blowing

Gas recovery (to BF gas pipe)

Scrap melting

Continued tapping

Furnace diameter: 3.4m

Height: 20m

Structure of Shaft Furnace

Outline of Super-SINTERTM System

Transition of Crude Steel Production at JFE Steel

Initiatives for Achieving the Voluntary Action Program

�JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 8: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

“Environmental Showcase” exhibit at the Hokkaido Toyako Summit The Environmental Showcase was held during the Hokkaido Toyako Summit in July 2008, and featured exhibits of environmen-tally conscious products. JFE Steel participated by displaying its high tensile steel sheets for automobiles. These steel sheets can achieve higher strength without sacrificing workability and are man-ufactured with our advanced technologies, such as the addition of alloy elements. These sheets enable manufacturers to build lighter, more fuel-efficient automobiles, thereby contributing to a reduction of CO2 emissions. The showcase was a great opportunity for us to promote a better understanding of our sophisticated technical capa-bilities among people from around the world.

JFE Steel is actively moving forward with the devel-opment of high performance steel products such as highly formable and tensile steel sheets that contribute to the development of lighter, more fuel efficient automobiles; high flux density and low iron loss electromagnetic steel sheets to increase the

efficiency of transformers and motors.According to the “FYE 2008 Estimates” re-

leased by the Institute of Energy Economics, Japan, member companies of the institute have cut 8.12 million tons of CO2 emissions by supplying 4.47 mil-lion tons of the high performance steel products.

Ships1.12Trains 0.09Transformers1.32

Automobiles 4.96

0.63

Source: The Japan Iron and Steel Federation* Based on the “FYE 2008 Estimates” released by the Institute of Energy Economics, Japan.

Ships112

Trains 9

Transformers132

Automobiles 496

Boilers forpower generation

63CO2 Emission

Reduction

8.12 milliont-CO2

CO2 EmissionReduction

8.12 milliont-CO2

Boilers forpower generation

CO� Emission Reduction Effect at the Stage of Using High Performance Steel Products (the year ended March ��, �008)

High tensile steel sheets for automobiles

Contributing to the Reduction of CO� through Our Products

The JISF’s reduction of CO2 emissions

8.12million tons

Special Feature

� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 9: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Work Completed on the Grande Progresso—One of the World’s Largest Ore Carriers Work on the Grande Pro-gresso, which means “major progress” in Portuguese, was completed on May 30, 2008. This 300,000-ton ore carrier will transport raw materials for JFE Steel. Using larger vessels like the Grande Progresso creates transportation efficiencies and greatly reduces the environmen-tal impact and transportation costs.

To reduce CO2 and NOx emissions from the trans-portation of steel products, JFE Steel is making a “modal shift” to relatively low-environmental impact ship and rail transportation modes. In pur-suit of better transportation efficiencies, we are also using more large ore carriers to transport

raw materials.JFE Steel achieved a modal shift of 95% in

the year ended March 31, 2009. The amount of CO2 emissions for deliveries was approximately 390,000 tons.

To remove iron ore impurities, lime and dolomite are added to BF and converters. The CO2 from the breaking down of these materials is non-energy-related CO2.

During the year ended March 31, 2009, JFE Steel’s non-energy-related CO2 emissions were approximately 1.79 million tons, down 7% from the level of the prior year.

Truck 33%

Total modal shift rate for the industry

Ship+Rail67%

Ship+Rail95% Truck

40%Ship+Rail60%

Truck 5%

Overall

Deliverydistanceof 500 km

and longer

Deliverydistanceof 500 km

and longer

Source : Ministry of Land, Infrastructure, Transport and Tourism

TruckShip+RailOverallSource : Ministry of Land, Infrastructure, Transport and Tourism

JFE Steel’s Estimated Non-Energy-Related CO� Emissions

100

50

0

150

200

(Years endedMarch 31)

‘04 ‘05 ‘08

(10,000 t/year)

7%179

183

‘06

185

‘07

193194

‘90

185

100

50

0

150

200

(年度)‘04 ‘05 ‘08

(万t/年)

7%179

183

‘06

185

‘07

193194

‘90

185

JFE Steel’s modal shift rate

The Grande Progresso (built by the Universal Shipbuilding Corp.).

Transportation Division’s Energy-Saving Measures

Non-Energy-Related CO� Emissions

Modal shift rate

95%

8JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 10: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Exchange of Environmental Technology with China

JFE Steel is using the world’s most advanced energy-saving technologies to fight against glob-al warming.

COURSE 50*�: Revolutionary Steelmaking Method for Reducing CO� Emissions

In July 2008, the Japan Iron and Steel Federation started the COURSE 50 Project, which will develop tech-nologies for drastically reducing CO2 emissions. The purpose of this proj-ect, in which JFE Steel has a leading role, is to develop technologies for 1) reducing CO2 emissions through the use of hydrogen reduction in blast furnaces and 2) separating and cap-turing CO2 from blast furnaces. JFE Steel is working to develop physical adsorption technology that relies on pressure differences, as well as other innovative technologies, for separat-ing and capturing CO2.

Furnace

Reduced iron

Reduced iron

Oxygen

Converter

Iron ore hydrogenreduction technology

Iron ore hydrogenreduction technology

CO2 sequestration technology

Blast furnace gas circulation technology

(Information sharing with the EU)

Coke furnace Gasprocessing

Hydrogensupply

to society

Coke(Reduction in coke consumption = Reduction in CO2 emissions)

Coke furnace gas

Waste heat (sensible heat)

H2:65%CO:35%H2

H2 H2

CO2CO

Blast furnace gas

Pig iron

ex. CH4+H2O 3H2+CO

Hydrogen amplification

technology

CO2 separation and capture technology

Technology for expanded use of unused waste heat

高炉

還元鉄

還元鉄

酸素

転炉

水素鉄鉱石還元技術

水素鉄鉱石還元技術

CO2貯留技術高炉ガス循環技術(EUとの情報交換)

コークス炉コークス(コークス消費量減少=CO2減少)

コークス炉ガス

排熱(顕熱)

H2:65%CO:35%H2

CO2CO

高炉ガス

銑鉄

ex. CH4+H2O

水素増幅技術

CO2分離・回収技術

未利用排熱活用拡大技術

The Japan Iron and Steel Federation and the Chi-na Iron & Steel Association have been holding an annual Japan China Steel Industries Conference on Exchange of Advanced Technologies on Envi-ronmental Preservation and Energy Saving since 2005. The fourth conference was held in March 2009 in Chiba and featured an active discussion of environmental protection technologies.

worldsteel*1 Initiatives• Promotion of optimal energy-saving technol-

ogies based on international comparisons of unit CO2 emission data.

• Thorough reduction of CO2 emissions by pro-moting the development of long-term, innova-tive technologies in individual countries.

Sectoral Approach*2 for APP*3

*1 worldsteelThe World Steel Association (worldsteel) represents approxi-mately 180 iron producers/iron and steel institutes among 55 countries including Japan, the U.S., the EU, Russia, etc.

*2 The Sectoral ApproachA CO2 reduction approach that applies efficiency indices catego-rized by each sector, such as steel (example: unit CO2 per ton of crude steel). This indices-based approach is easy to adopt even for developing countries such as China and India, being a reliable method of reducing CO2 backed by technology.

*3 APPThe Asia-Pacific Partnership on Clean Development and Climate (APP) is an international organization to address environmental issues such as climate change and energy security, launched in July 2005 with the participation of Japan, Australia, China, India, Korea, the U.S., and from October 2007, Canada.

技術ハンドブック作成各国の64の環境・省エネ技術を収録、うち27の技術を日本から提供。

環境・省エネ技術の特定

代表的な環境・省エネ技術の普及につい各国の事業所ごとに実態調査

普及率から削減可能量評価

実際の技術・設備導入・促進へ

Prepare manuals for the technologiesInclude 64 environmental and energy-saving technologies from APP countries

Of these, Japan supplies 27 technologies

Identify environmental and energy-saving technologies

Conduct a field survey on diffusion of major environmentaland energy-saving technologies at each site of APP countries

Completed energy-saving assessment for three steelworks in China in the year ended March 31, 2008 and for three steelworks in India in the years ended

March 31, 2008 and 2009

Evaluate possible reduction amounts based on the diffusion rate

Implement the practical introductionand promotion of technologies and facilities.

Prepare manuals for the technologiesInclude 64 environmental and energy-saving technologies from APP countries

Of these, Japan supplies 27 technologies

Identify environmental and energy-saving technologies

Conduct a field survey on diffusion of major environmentaland energy-saving technologies at each site of APP countries

Evaluate possible reduction amounts based on the diffusion rate

Implement the practical introductionand promotion of technologies and facilities.

Fighting against Global Warming through the Application of Environmental and Energy Technologies

*� COURSE 50An acronym for CO2 Ultimate Reduction in Steelmaking Process by Innovative Technology for Cool Earth 50.

Special Feature

9 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 11: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

New Power Generation by Waste Heat Recovery Launched at PSC

JFE Steel has transferred to Philippine Sinter Corporation (PSC)*1 its technology for recovering waste heat from the sintering process and using the heat to generate electricity. PSC operation be-gan using this technology on September 8, 2008. JFE Steel will acquire Certified Emission Reduc-tions through this CDM*2 project with PSC.

The waste heat recovery facility is operating steadi-ly, and we believe the UN will approve Certified Emission Reductions in the near future. Looking ahead, we would like to contribute to measures against g l oba l wa rm ing in the Philippines through this kind of activity.

Comments of Project Participants

The JFE Group has used environmental preser-vation, energy conservation, and CO2 reduction technologies in its R&D to contribute to inter-national society by undertaking numerous tech-

nology transfers that fight global warming and help developing countries advance economically while protecting their environments.

China• Technical support for the combined cycle power plant at Taiyuan Iron and Steel Co., Ltd.• Waste heat recovery power plants for cement factories (Sichuan Province and four other locations)• Environmental preservation and an energy-conservation diagnosis at Taiyuan Iron & Steel• DME production from unused coke oven gas• Model project to reduce energy consumption at ferroalloy electric furnace by raw material pretreatment

and utilization of flue gas• FS for regenerative burners at Shougang Iron & Steel Co. and Anshan Iron & Steel (Group) Co.• Study for energy-saving measures for lime burning furnace• tudy of natural gas DME project in Sichuan Province (14 others)

Vietnam• FS for saving energy at Vietnam Steel Corp. (1 other)

Russia• FS for conversion of a coal-fired

power plant in Sakhalin to a natural gas-fired plant (2 others)

Ukraine• Study on optimization of

gas pipeline improvement (2 others)

Pakistan• FS for saving energy at Pakistan SteelworksIndia• An energy conservation diagnosis at Steel Authority

of India Limited• Environmental preservation and energy conservation

diagnosis at Vizag Steel• Sintering furnace for waste heat recovery at Vizag

Steel• Switch from diesel to natural gas for generator fuel• FS for waste heat recovery at sintering cooler at Tata

Iron and Steel Co., Ltd. (3 others)

India• An energy conservation diagnosis at Steel Authority of

India Limited• Environmental preservation and energy conservation

diagnosis at Vizag Steel• Sintering furnace for waste heat recovery at Vizag

Steel• Switch from diesel to natural gas for generator fuel• FS for waste heat recovery at sintering cooler at Tata

Iron and Steel Co., Ltd. (3 others)Bangladesh• FS for rehabilitation and optimization of pipelines to

reduce GHG emissionsThailand• Industrial waste incinerator heat recovery model project

for Industrial Estate Authority of Thailand• Study on introduction of high-performance industrial

furnace for steel rolling reheating furnaces in Thailand (5 others)

Poland• Study on introducing

high-performance industrial technology for reheating furnaces in Poland

Philippines• Project for power generation by waste heat

recovery from sintering furnace

Indonesia• Waste heat recovery power plants for

cement factories and introduction of CDM• Switch from diesel to natural gas for

generator fuel (1 other)

Malaysia• Energy-saving model project for waste heat recovery

from papermaking sludge incinerator• FS for power generation by waste heat recovery from

cement production process

Brazil• Study on energy-saving

measures by low-temperature waste heat recovery at Acominas Works (1 other)

Mexico • FS for converter waste gas

recovery facility• Energy conservation diagnosis for

electric arc furnace

■ APP member nations

International Cooperation Projects by the JFE Group

All PSC plants

Boilerfacilities

Vacuumcondenser

Exhauststack

Inductionfan

Cooler

Cooling fan

Turbine Generator

Steam drum

Deionized watertreatment

排気塔 誘引ファン

冷却装置

冷却ファン

Sintering machine

Power supply from theoutside resource

Power supply from generatorPower generation facilities

All PSC plants

Boilerfacilities

Vacuumcondenser

Exhauststack

Inductionfan

Cooler

Cooling fan

Turbine Generator

Steam drum

Deionized watertreatment

Sintering machine

Power supply from theoutside resource

Power generation facilities

All PSC plants

Boilerfacilities

Vacuum condenser

Exhauststack

Inductionfan

Sintering machine

Cooler

Cooling fan

Power supply from theoutside resource

Turbine

Power generation facilities

Power supply from generator

Steam drum

Deionized watertreatment

Generator

Outline of Power Generation by PSC Waste Heat Recovery

Toshimitsu Hayashi (right), Executive Advisor for HR and Corporate Planning, Philippine Sinter Corporation

*1 PSC (Philippine Sinter Corporation)A subsidiary in Mindanao in the Philippines, manufacturing sintered ore as a raw material for steel production.

*2 CDM (Clean Development Mechanism)A system introduced in the Kyoto Protocol wherein devel-oped nations supply developing nations with technology and funds to reduce CO2 emissions, and in return the supplying country can list the reductions in their own target achieve-ment records.

Projects Outside Japan

�0JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 12: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Under the JFE Group CSR Council, the JFE Group has set up not only the Group Environ-mental Committee chaired by the President of JFE Holdings, but also an Environmental Committee in each of the Group’s operating companies and affiliated companies. With this

multi-tiered committee system, JFE has been dealing with environment-related issues such as setting objectives for environmen-tal protection activities, progress checks of those activities, and evaluation of environ-mental performance for the whole group.

Construction and Operation of Environmental Management System

Each company in the JFE Group has been aim-ing to receive ISO 14001 certification in order to promote voluntary and continuous environ-mental activities. Four operating companies with production facilities have all received ISO 14001 certification for individual works. The JFE Group will continuously extend the number of accred-ited companies/production facilities.

Promotion to Receive ISO ��00�

At the JFE Group, environmental auditing has been conducted on the basis of ISO 14001 with the aim of enhancing environmental manage-ment quality. Regarding environmental auditing

Environmental Auditing

on the basis of ISO 14001, inspections are made by certification authorities, while internal audit-ing is conducted by qualified employees who not only have taken the auditor-training course offered by an external institution, but also have experience in environment-related, work.

The JFE Group is actively conducting environ-mental education aiming to foster a corporate culture of engaging in environmental protection activities. In each operating company, environ-mental education is incorporated in training programs for new employees and promotions, and also includes annual programs at each level, covering environmental protection.

Environmental Education

Kawasaki Microelectronics Environmental Committee

JFE GroupEnvironmental Committee

Members: Persons responsible for environment at JFE Holdings and each operating company

Members: Persons responsible for environment at each operating company and affiliated company

Group Environmental Liaison Committee

Affiliated Company Environmental Committee

Affiliated Company Environmental Committee

JFE Engineering Environmental Committee

JFE Steel Environmental Committee

Universal Shipbuilding Corporation Environment Council

JFE Urban Development Environmental Committee

Affiliated Company Group Environmental Liaison Committee

JFE GroupEnvironmental Committee

Members: Persons responsible for environment at JFE Holdings and each operating company

Group Environmental Liaison Committee

構成メンバー:JFEホールディングス

および各事業会社環境担当者

構成メンバー:各事業会社環境担当者

および各関連会社環境担当者

グループ環境委員会

JFEスチール地球環境委員会

関連会社環境委員会

関連会社環境委員会

ユニバーサル造船環境会議

JFE都市開発環境委員会

川崎マイクロエレクトロニクス

環境委員会

グループ環境連絡会

関連会社グループ環境連絡会

JFEエンジニアリング

環境委員会

JFE Group Environmental CommitteeJFE Steel Environmental CommitteeJFE Engineering Environmental CommitteeUniversal Shipbuilding Corporation Environment Council JFE Urban Development Environmental CommitteeKawasaki Microelectronics Environmental CommitteeAffiliated Company Environmental CommitteeGroup Environmental Liaison CommitteeAffiliated Company Group Environmental Liaison CommitteeMembers: Persons responsible for environment at JFE Holdings and each operating companyMembers: Persons responsible for environment at each operating company and affiliated company

Environmental Management System

Environmental Management System

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 13: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

The JFE Group actively participates in volunteer cleanup activities in areas adjacent to its facilities.

Elsewhere, the JFE Steel West Japan Works went a bit farther afield, participating in a cleanup campaign of the Ashida Riverside held in July, a special month for protecting Japan's rivers, as well as a cleanup of the local seashore designated as habitat for horseshoe crabs, a protected species.

The JFE Group participates in various exhibitions on environmental themes in order to provide stakeholders with necessary information on its activities.

In December 2008, we participated in Eco-Prod-ucts 2008, one of Japan’s largest environmental fairs, presenting our environmental initiatives, along with our technologies/products that sup-port entire society and life, and contribute to en-vironmental preservation.

The JFE Group actively offers information relat-ed to the environment through the JFE Group website. Its environmental management policy, results and activities are introduced under the title of “Environmental Activities.”

Moreover, JFE has been cooperating with an environmental website “ecobeing,” where general knowledge on environmental issues is presented in an easily comprehensive way. Through this linkage, the Group introduces comments of “eco people,” who are innova-tively involved in environmental issues. This is one example of JFE’s efforts to promote environmental awareness activities among the general public.

Cleaning up the banks of the Ashida River

JFE booth at Eco-Products 2008

Participation in Clean-Up Campaigns of the Ashida Riverside and Horseshoe Crab Habitat

Exchanges through Exhibitions

Communication with Society Related to the Environment

Information through the Internet

JFE Holding's environmental initiative website at:http://www.jfe-holdings.co.jp/en/environment/index.html

Environmental website "ecobeing" at:http://www.ecobeing.net/

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 14: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

To promote energy saving and further reduce environmental loads, JFE has actively invested in plant and equipment based on R&D achieve-ments in the Group’s proprietary environmental technologies.

Cumulative investment in energy saving since 1990 has reached ¥385.3 billion, enabling us to achieve energy efficiencies that rank

among the highest in the world. We are planning further investment in plant and equipment to promote global warming prevention. Meanwhile, cumulative investment in environmental protec-tion since 1973 has reached ¥536.8 billion. We will continuously invest in measures to further reduce environmental loads.

Cumulative Investment in Energy Saving

200

0

100

400

300

600

500

(Billions of yen)

536,8

* Investment in environmental protection:Total investment in effective use of resources and environmental protection

‘75‘73 ‘80 ‘85 ‘90 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

2,000

0

1,000

4,000

3,000

6,000

5,000

(億円)

5,368

※ 環境保全投資資源の有効活用と環境保全の投資額の合計

(年度)‘75‘73 ‘80 ‘85 ‘90 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 (Years ended March 31)

Cumulative Investment in Environmental Measures*

200

0

100

300

400

(Billions of yen)

385.3

‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

2,000

0

1,000

3,000

4,000

(億円)

3,853

(年度)‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 (Years ended March 31)

Environmental Accounting

Transition of Capital Investment

Environmental Accounting

0.2

19.0

0.9

18.5

-

0.8

-

39.4

2.5

16.5

19.1

38.9

1.6

8.8

0.6

88.0

Investment & expenses related to JFE’s own business

Description

Total

Investment Expenses

Investment & expenses related to customers and society

Environmental accounting data stated above was calculated on the basis of the following assumptions.For costs, data on environment-related investment and expenses at JFE’s steelworks were gathered, but in the field of research & development, Group-wide data was collected.The effects refer to “presumed effects”; “risk aversion effects,” etc., are excluded from calculations.* Calculations do not include capital investments made primarily for purposes other than environmental protection, such as renovation of superannuated facilities, even if the

process as a whole results in a net energy saving compared to the former process.

(Billions of yen)

Management

Prevention of global warmingEffective use of resourcesEnvironmental protection

Miscellaneous

Research & development

Social activities

Monitoring & measurement of environmental influence, EMS-related activities, environmental education & training, etc.

Recirculation of industrial water, recycling of by-products & waste generated in-house, waste management, etc.Prevention of air pollution, water pollution, soil contamination, noise, vibration, ground subsidence, etc.

Fees/charges, etc.

Technology development for environment, energy, prevention of global warmingProtection of nature, support for afforestaion, information disclosure, exhibition, advertisement, etc.

Energy conservation, effective use of energy, etc.

Environmental Protection Costs (April 1, 2008 to March 31, 2009)

In the year ended March 31, 2009, environment-related capital investment totaled ¥39.4 billion and expenses amounted to ¥88.0 billion. The ratio of environment-related capital investment

against total capital investment is approximately 19%. As a result of activities during the year end-ed March 31, 2009, the effects of energy conser-vation were valued at an estimated ¥0.9 billion.

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 15: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

F l e x i b i l i t y

S i n c e r i t y

C h a l l e n g i n g S p i r i t

F l e x i b i l i t y

S i n c e r i t y

C h a l l e n g i n g S p i r i t

Reducing Environmental Loads in Business Activities

Priority Environmental Targets and Results

Energy/Material Flow in the Steelmaking Process

Reducing Environmental Loads in Business Activities at JFE Steel

Efforts to Restore Marine Environments using Steel Byproducts

Reducing Environmental Loads in Business Activities at JFE Engineering

Reducing Environmental Loads in Business Activities at Kawasaki Microelectronics

Reducing Environmental Loads in Business Activities at JFE Urban Development

15

17

19

23

25

27

28

By Utilizing the World's Most Advanced Technology for Reduction of Environmental Loads

Reducing Environmental Loads in Business Activities

Priority Environmental Targets and Results

Energy/Material Flow in the Steelmaking Process

Reducing Environmental Loads in Business Activities at JFE Steel

Efforts to Restore Marine Environments using Steel Byproducts

Reducing Environmental Loads in Business Activities at JFE Engineering

Reducing Environmental Loads in Business Activities at Kawasaki Microelectronics

Reducing Environmental Loads in Business Activities at JFE Urban Development

15

17

19

23

25

27

28

By Utilizing the World's Most Advanced Technology for Reduction of Environmental Loads

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 16: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Group Companies Pages to Refer 2009 Priority Environmental Targets 2009 Results 2010 Priority Environmental Targets

JFE Steel

BR55-58ER3–10

Promote measures to prevent global warming Promote measures to prevent global warming• Promoting measures to prevent global warming in line with the Voluntary Action Program of the Japan Iron and Steel Federation

(JISF)(Compared to 1990, we plan to achieve a 10% decrease in energy consumption for the period from the year ending in March 2009 to 2013)

• Approx. 8% reduction in energy consumption, and approx. 18% reduction in unit energy consumption compared to the year ended March 1991

• CDM implementation: Commenced PSC operation in September 2008• Commenced shaft furnace operation in August 2008• Commenced Kurashiki CDQ operation in March 2009• Commenced Super-SINTERTM operation in January 2009• Introduced and expanded the regenerative burners

• Promoting measures to prevent global warming in line with the Voluntary Action Pro-gram of the Japan Iron and Steel Federation (JISF)(Compared to 1990, we plan to achieve a 10% decrease in energy consumption for the period from the year ending in March 2009 to 2013)

ER19–20Continuously strive to reduce environmental risks Continuously strive to reduce environmental risks

• Comply with new regulations• Promote voluntary environmental conservation activities

• Newly added the wastewater treatment facilities (in order to comply with stricter restrictions on nitrogen in Chiba region)

• Continued voluntary control measures for VOC reduction

• Comply with new regulations• Promote voluntary environmental conservation activities

ER21ER39–40

Promote byproduct recycling Promote byproduct recycling• Continue development of recycling technology for dust and sludge and implementation of actual equipment • Commenced oil sludge recycling facilities (roasting furnace)

• Introduced dust recycling facilities (Fukuyama region)• Continue development of recycling technology for dust and sludge and implementation

of actual equipment• Launch a group-wide waste date collection system

ER17–18ER21ER41

Improve waste control Improve waste control• Develop a group-wide waste material collection system• Introduce an electronic manifest system to the entire group, targeted at 80% computerization

• Currently introducing a waste material collection system• Introduced an electronic manifest system to 69% of the Group’s major works

• Develop a group-wide waste material collection system• Introduce an electronic manifest system to the entire group, targeted at 80% comput-

erization

JFE EngineeringER23

Promote energy-saving activities in production divisions Promote energy-saving activities in production divisions• Tsurumi Engineering & Manufacturing Center: 12% reduction compared to the year ended March 1998 level (the target is calcu-

lated based on electricity usage per hour of operation) • Shimizu Works: 40% reduction compared to the year ended March 1998 level (the target is calculated based on electricity usage

per unit volume of production)• Tsu Works: 15% increase compared to the year ended March 1998 level (the target is calculated based on electricity usage per

unit volume of production)* An increase compared to the year ended March 1998 is anticipated for Tsu Works due to an increased usage of high current welding machinery

• Tsurumi Engineering and Manufacturing Center: achieved a reduction of 17% compared to the year ended March 1998

• Shimizu Works: achieved a reduction of 33% compared to the year ended March 1998

• Tsu Works: generated an increase of 4% compared to the year ended March 1998

• Total CO2 Emission of 3 works: 16,849 t-CO2

• Tsurumi Engineering and Manufacturing Center: achieves a reduction of 13% compared to the year ended March 1998

• Shimizu Works: achieves a reduction of 24% compared to the year ended March 1998• Tsu Works: limit the increase to a maximum of 5% compared to the year ended March

1998* An increase compared to the year ended March 1998 is anticipated for Tsu Works due to an in-

creased usage of high current welding machinery

ER24 Promote reduction of construction site waste Promote reduction of construction site waste• A recycle rate of over 73% • A recycle rate of 85.9% • A recycle rate of over 74%

Universal Shipbuilding

ER25

Promote measures to prevent global warming Promote measures to prevent global warming• Target a 10% reduction in electric power consumption in basic unit within the year ending March 2011 compared to the level of

the year ended March 1991 (scope: new shipbuilding shipyards) • Target a 1% reduction in energy consumption in basic unit compared to the previous year (scope: 5 shipyards)

• Achieved an 18% reduction compared to the level of the year ended March 1991, due to the delivery of LNG carriers at Tsu Shipyard

• Achieved a total of 5% reduction in 5 shipyards compared to the previous year• Achieved a 2.4% reduction in CO2 emission at the group-wide level with the

emission amount of 72,644 t-CO2

• Target a 10% reduction in electric power consumption in basic unit within the year ending March 2011 compared to the level of the year ended March 1991 (scope: new shipbuilding shipyards)

• Target a 1% reduction in energy consumption in basic unit compared to the previous year (scope: 5 shipyards)

ER26Reduce waste emissions Reduce waste emissions

• Target the waste recycling rate to be 84% or more at the stage of production in the year ending March 2011 (scope: a group-wide level)

• Achieved a group-wide waste recycling rate of 87.5%, a substantial increase from the previous year

• Target the waste recycling rate to be 84% or more at the stage of production in the year ending March 2011 (scope: a group-wide level)

ER26Take measures to regulate VOC emissions Take measures to regulated VOC emission

• Aim to meet an emission standard level of less than 700 ppmC (scope: coating facilities with an air-exhaust capacity of 100,000 m3/hour or more)

• Achieved a level of less than 700 ppmC of the emission standard at both the Ariake and Tsu Shipyards

• Aim to meet an emission standard level of less than 700 ppmC (scope: coating facilities with an air-exhaust capacity of 100,000 m3/hour or more)

ER26Monitor the chemical substances restricted under PRTR Monitor the chemical substances restricted under PRTR

• Monitor emissions into the air as well as transfers to other places of restricted chemical substances, particularly Xylene, Ethyl-benzene, and Toluene (scope: 5 shipyards)

• The amounts of emission and transfer regarding 3 major chemical substances under control have been increased substantially from the previous year

• Monitor emissions into the air as well as transfers to other places of restricted chemical substances, particularly Xylene, Ethylbenzene, and Toluene (scope: 5 shipyards)

KawasakiMicro-electronics ER27

Promote measures to prevent global warming

Along with the closing of the Utsunomiya Works, we will review our activity themes and implement the following:• Target a 100% recycling rate for the wastewater treatment-origin dehydrated sludge• Aim to reduce consumption of chemical substances under PRTRIn addition, further improve the chemical substance control system for LSI products under EU-REACH

• Energy saving rate: 1% or higher• Complete new C2F6 gas substitute experiments and will begin reductions in early 2009

• Achieved a 3% energy conservation rate. Energy origin CO2 emission: 15,800 t-CO2• Achieved the practical application of substitute gas. PFC gas emission: 22,500 t-CO2

Reduce consumption of chemical substances• Reduce usage amount of notification substances• Reduce the amount of types of substances used

• Reduced hydrogen fluoride usage• Reduced TBP emission

Reduce industrial waste• Achieve recycling rate of over 50% for the dehydrated sludge from wastewater treatment • Achieved a recycling rate of over 71% for dehydrated sludge

JFE Urban Development ER28

Promote energy-saving activities in the condominium development business Promote energy-saving activities in the condominium development business• Acquire Housing Performance Evaluation Reports

Anti-degradation of structural frames measure grade: Grade 3Energy efficiency grade: Grade 3Formaldehyde emission control grade: Grade 3

• Promote the use of energy-conserving materials and facilities

• Acquired for all condominiums

• Adopted LED lights, PVC window frames, double-glazed windows, and ther-mally insulated bathtubs

• Acquire Housing Performance Evaluation ReportsAnti-degradation of structural frames measure grade: Grade 3Energy efficiency grade: Grade 3Formaldehyde emission control grade: Grade 3

• Promote the use of energy-conserving materials and facilities

Promote measures to prevent global warming in the facility management business Promote measures to prevent global warming in the facility management business• Renew the energy-conserving equipment • THINK: Renewed pumps, etc. • Renew the energy-conserving equipment

Promote measures to reduce waste emissions in the facility management business Promote measures to reduce waste emissions in the facility management business• Improve commercial and business recycling rates

THINK: Recycling rate 54.7%Orto Yokohama: Recycling rate 50%

• THINK: Recycling rate 55.4%: a 6.1% increase from the level of the year ended March 2008

• Orto Yokohama: Recycling rate 48.5%: a 1.9% increase from the level of the year ended March 2008

• Improve the recycling rate of targeted commercial and business wastes THINK: Recycling rate 56.5%Orto Yokohama: Recycling rate 50%

* In the column “Pages to Refer,” the number preceded by BR represents the corresponding page number in the “JFE Group Business Report 2009” and the ER number in the “JFE Group Environmental Sustainability Report 2009” respectively.

Priority Environmental Targets and ResultsReducing Environmental Loads in Business Activities

�5 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 17: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Group Companies Pages to Refer 2009 Priority Environmental Targets 2009 Results 2010 Priority Environmental Targets

JFE Steel

BR55-58ER3–10

Promote measures to prevent global warming Promote measures to prevent global warming• Promoting measures to prevent global warming in line with the Voluntary Action Program of the Japan Iron and Steel Federation

(JISF)(Compared to 1990, we plan to achieve a 10% decrease in energy consumption for the period from the year ending in March 2009 to 2013)

• Approx. 8% reduction in energy consumption, and approx. 18% reduction in unit energy consumption compared to the year ended March 1991

• CDM implementation: Commenced PSC operation in September 2008• Commenced shaft furnace operation in August 2008• Commenced Kurashiki CDQ operation in March 2009• Commenced Super-SINTERTM operation in January 2009• Introduced and expanded the regenerative burners

• Promoting measures to prevent global warming in line with the Voluntary Action Pro-gram of the Japan Iron and Steel Federation (JISF)(Compared to 1990, we plan to achieve a 10% decrease in energy consumption for the period from the year ending in March 2009 to 2013)

ER19–20Continuously strive to reduce environmental risks Continuously strive to reduce environmental risks

• Comply with new regulations• Promote voluntary environmental conservation activities

• Newly added the wastewater treatment facilities (in order to comply with stricter restrictions on nitrogen in Chiba region)

• Continued voluntary control measures for VOC reduction

• Comply with new regulations• Promote voluntary environmental conservation activities

ER21ER39–40

Promote byproduct recycling Promote byproduct recycling• Continue development of recycling technology for dust and sludge and implementation of actual equipment • Commenced oil sludge recycling facilities (roasting furnace)

• Introduced dust recycling facilities (Fukuyama region)• Continue development of recycling technology for dust and sludge and implementation

of actual equipment• Launch a group-wide waste date collection system

ER17–18ER21ER41

Improve waste control Improve waste control• Develop a group-wide waste material collection system• Introduce an electronic manifest system to the entire group, targeted at 80% computerization

• Currently introducing a waste material collection system• Introduced an electronic manifest system to 69% of the Group’s major works

• Develop a group-wide waste material collection system• Introduce an electronic manifest system to the entire group, targeted at 80% comput-

erization

JFE EngineeringER23

Promote energy-saving activities in production divisions Promote energy-saving activities in production divisions• Tsurumi Engineering & Manufacturing Center: 12% reduction compared to the year ended March 1998 level (the target is calcu-

lated based on electricity usage per hour of operation) • Shimizu Works: 40% reduction compared to the year ended March 1998 level (the target is calculated based on electricity usage

per unit volume of production)• Tsu Works: 15% increase compared to the year ended March 1998 level (the target is calculated based on electricity usage per

unit volume of production)* An increase compared to the year ended March 1998 is anticipated for Tsu Works due to an increased usage of high current welding machinery

• Tsurumi Engineering and Manufacturing Center: achieved a reduction of 17% compared to the year ended March 1998

• Shimizu Works: achieved a reduction of 33% compared to the year ended March 1998

• Tsu Works: generated an increase of 4% compared to the year ended March 1998

• Total CO2 Emission of 3 works: 16,849 t-CO2

• Tsurumi Engineering and Manufacturing Center: achieves a reduction of 13% compared to the year ended March 1998

• Shimizu Works: achieves a reduction of 24% compared to the year ended March 1998• Tsu Works: limit the increase to a maximum of 5% compared to the year ended March

1998* An increase compared to the year ended March 1998 is anticipated for Tsu Works due to an in-

creased usage of high current welding machinery

ER24 Promote reduction of construction site waste Promote reduction of construction site waste• A recycle rate of over 73% • A recycle rate of 85.9% • A recycle rate of over 74%

Universal Shipbuilding

ER25

Promote measures to prevent global warming Promote measures to prevent global warming• Target a 10% reduction in electric power consumption in basic unit within the year ending March 2011 compared to the level of

the year ended March 1991 (scope: new shipbuilding shipyards) • Target a 1% reduction in energy consumption in basic unit compared to the previous year (scope: 5 shipyards)

• Achieved an 18% reduction compared to the level of the year ended March 1991, due to the delivery of LNG carriers at Tsu Shipyard

• Achieved a total of 5% reduction in 5 shipyards compared to the previous year• Achieved a 2.4% reduction in CO2 emission at the group-wide level with the

emission amount of 72,644 t-CO2

• Target a 10% reduction in electric power consumption in basic unit within the year ending March 2011 compared to the level of the year ended March 1991 (scope: new shipbuilding shipyards)

• Target a 1% reduction in energy consumption in basic unit compared to the previous year (scope: 5 shipyards)

ER26Reduce waste emissions Reduce waste emissions

• Target the waste recycling rate to be 84% or more at the stage of production in the year ending March 2011 (scope: a group-wide level)

• Achieved a group-wide waste recycling rate of 87.5%, a substantial increase from the previous year

• Target the waste recycling rate to be 84% or more at the stage of production in the year ending March 2011 (scope: a group-wide level)

ER26Take measures to regulate VOC emissions Take measures to regulated VOC emission

• Aim to meet an emission standard level of less than 700 ppmC (scope: coating facilities with an air-exhaust capacity of 100,000 m3/hour or more)

• Achieved a level of less than 700 ppmC of the emission standard at both the Ariake and Tsu Shipyards

• Aim to meet an emission standard level of less than 700 ppmC (scope: coating facilities with an air-exhaust capacity of 100,000 m3/hour or more)

ER26Monitor the chemical substances restricted under PRTR Monitor the chemical substances restricted under PRTR

• Monitor emissions into the air as well as transfers to other places of restricted chemical substances, particularly Xylene, Ethyl-benzene, and Toluene (scope: 5 shipyards)

• The amounts of emission and transfer regarding 3 major chemical substances under control have been increased substantially from the previous year

• Monitor emissions into the air as well as transfers to other places of restricted chemical substances, particularly Xylene, Ethylbenzene, and Toluene (scope: 5 shipyards)

KawasakiMicro-electronics ER27

Promote measures to prevent global warming

Along with the closing of the Utsunomiya Works, we will review our activity themes and implement the following:• Target a 100% recycling rate for the wastewater treatment-origin dehydrated sludge• Aim to reduce consumption of chemical substances under PRTRIn addition, further improve the chemical substance control system for LSI products under EU-REACH

• Energy saving rate: 1% or higher• Complete new C2F6 gas substitute experiments and will begin reductions in early 2009

• Achieved a 3% energy conservation rate. Energy origin CO2 emission: 15,800 t-CO2• Achieved the practical application of substitute gas. PFC gas emission: 22,500 t-CO2

Reduce consumption of chemical substances• Reduce usage amount of notification substances• Reduce the amount of types of substances used

• Reduced hydrogen fluoride usage• Reduced TBP emission

Reduce industrial waste• Achieve recycling rate of over 50% for the dehydrated sludge from wastewater treatment • Achieved a recycling rate of over 71% for dehydrated sludge

JFE Urban Development ER28

Promote energy-saving activities in the condominium development business Promote energy-saving activities in the condominium development business• Acquire Housing Performance Evaluation Reports

Anti-degradation of structural frames measure grade: Grade 3Energy efficiency grade: Grade 3Formaldehyde emission control grade: Grade 3

• Promote the use of energy-conserving materials and facilities

• Acquired for all condominiums

• Adopted LED lights, PVC window frames, double-glazed windows, and ther-mally insulated bathtubs

• Acquire Housing Performance Evaluation ReportsAnti-degradation of structural frames measure grade: Grade 3Energy efficiency grade: Grade 3Formaldehyde emission control grade: Grade 3

• Promote the use of energy-conserving materials and facilities

Promote measures to prevent global warming in the facility management business Promote measures to prevent global warming in the facility management business• Renew the energy-conserving equipment • THINK: Renewed pumps, etc. • Renew the energy-conserving equipment

Promote measures to reduce waste emissions in the facility management business Promote measures to reduce waste emissions in the facility management business• Improve commercial and business recycling rates

THINK: Recycling rate 54.7%Orto Yokohama: Recycling rate 50%

• THINK: Recycling rate 55.4%: a 6.1% increase from the level of the year ended March 2008

• Orto Yokohama: Recycling rate 48.5%: a 1.9% increase from the level of the year ended March 2008

• Improve the recycling rate of targeted commercial and business wastes THINK: Recycling rate 56.5%Orto Yokohama: Recycling rate 50%

(Year ended/ending March 31)

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 18: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE Steel Corporation has endeavored to reduce environmental loads through R&D on energy saving and environmental protection technolo-gies and aggressive investment in facilities. As a result, our steel production processes now boast the world’s highest energy efficiency and

recycling rates. Far from becoming complacent with its achievements, JFE Steel still continues to conduct R&D and introduce equipment to further reduce environmental loads in each steel production process.

Energy/Material Flowin the Steelmaking Process

Energy recyclingin works

66%

    Reducing Environmental Loads in Business Activities

Materials for steelproduction• Iron ore 41 million tons• Coal 22 million tons• Lime 5 million tons

Byproducts14.4 million tons

Purchased energy• Electricity + Oil type

110 PJ

Industrial water238 million tons

Recycled materials• Steel scrap (BOF)• Waste plastic (BF)• Toner (sintering)

Recycled materials• Waste plastics• Waste PET bottles• Electric appliances• Food waste• Dust/ Sludge, etc

Input

Steel Production Process at JFE Steel

Energy conservation technology

Counter-measuresfacility

Steel production process

Raw material yard Coke oven

Coke oven gas BF gas BOF gas

Sintering plant Blast furnace Reheating furnace

Power generatingplant

Oxygen plant

Hot rolling,cold rolling

Continuousannealing, coating

ShipmentBOF, EF, CC

Environmental conservation technology

Generatedsubstance

Environ-mentalimpact

Counte-rmeasuresfacility

Recycled water

Energy supply34%• Power• Fuel gas• Steam

Wastewater,evaporation loss 6.6%

Landfill disposal0.4%

Marine & landcivil engineeringmaterials 72%• Material for cement• Roadbed material• Port & harbor

construction material• Fertilizer

Iron and steelproducts26.6 million tons(crude steel base)

Other products• Chemicals• Oxygen• Nitrogen• Hydrogen• Argon

Byproducts• NF® Board• PET material

Output

Energy recycling in works 66%

Byproducts recycling 27.6%

Water recycling 93.4%

Coke dry quenching(CDQ), coal moisturecontrol (CMC),combustion control

Coke oven gas desulfurization, waste ammonia liquor COD treatment, chemical by-product recovery

Yard water spraying,belt conveyor dust collection,laser dust monitoring

Flue gasdesulfurization &denitrification

Gas recovery, dustcollection, dusttreatment, slag recycling

Gas recovery, dustcollection, dusttreatment, slag recycling

Low-NOx burner,use of cleaner fuel

Waste acid & waste alkali treatment, waste oil recycling, coagulating sedimentation

Wastewatertreatment

Conversion to low-emissionvehicles

Flue gas, dust, wastewater(ammonia liquor)

Flue gas, dust,wastewater

Flue gas, slag, dust,wastewater

Flue gas, slag, dust,wastewater

Flue gas, dust Rolling wastewater,pickling wastewater

Coatingwastewater

Exhaust gas

Flue gas, dust, wastewater(ammonia liquor)

Dust, NOx, SOx Dust, SS Dust, SS NOx SS, waste oil,waste acid, iron salt

Metallic ion, etc. NOx, SPM (suspendedparticulate matter)

Gas turbine combined cycle power plant,Power plant fuel preheating device,High-efficiency air separation equipment

Sintering coolerwaste heatrecovery, line burner

Waste plasticsfeeding, pulverizedcoal injection, toppressure recoveryturbine, hot stovewaste heat recovery

Gas recovery,gas-sensibleheat recovery

Regenerativeburner, directcharging,low-temperatureextraction

Endless rolling,online heattreatment

Waste heat boiler,rotary regenerativeheat exchanger

Shortening oftransportation distance,improvement of loadefficiency, modal shift,application of IT

Loca

l com

mun

ity/O

ther

indu

strie

s/So

ciet

y

• Slag• Dust• Sludge

• Byproduct gas• Waste heat recovery steam• Power (BF Top pressure Recovery

Turbine: TRT)

Recovered energy recycling

Chemicalsubstances• Release 574 tons•Transfer 2,883 tons

CO2 Approx.63 million tonsFlue-gas• SOx 3.7 million m3

• NOx 11.9 million m3

• Dust

Dust

Dust

Recycling Process at the JFE Group

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 19: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Water recycling

93.4%

Byproduct recycling rate

99.6%

Materials for steelproduction• Iron ore 41 million tons• Coal 22 million tons• Lime 5 million tons

Byproducts14.4 million tons

Purchased energy• Electricity + Oil type

110 PJ

Industrial water238 million tons

Recycled materials• Steel scrap (BOF)• Waste plastic (BF)• Toner (sintering)

Recycled materials• Waste plastics• Waste PET bottles• Electric appliances• Food waste• Dust/ Sludge, etc

Input

Steel Production Process at JFE Steel

Energy conservation technology

Counter-measuresfacility

Steel production process

Raw material yard Coke oven

Coke oven gas BF gas BOF gas

Sintering plant Blast furnace Reheating furnace

Power generatingplant

Oxygen plant

Hot rolling,cold rolling

Continuousannealing, coating

ShipmentBOF, EF, CC

Environmental conservation technology

Generatedsubstance

Environ-mentalimpact

Counte-rmeasuresfacility

Recycled water

Energy supply34%• Power• Fuel gas• Steam

Wastewater,evaporation loss 6.6%

Landfill disposal0.4%

Marine & landcivil engineeringmaterials 72%• Material for cement• Roadbed material• Port & harbor

construction material• Fertilizer

Iron and steelproducts26.6 million tons(crude steel base)

Other products• Chemicals• Oxygen• Nitrogen• Hydrogen• Argon

Byproducts• NF® Board• PET material

Output

Energy recycling in works 66%

Byproducts recycling 27.6%

Water recycling 93.4%

Coke dry quenching(CDQ), coal moisturecontrol (CMC),combustion control

Coke oven gas desulfurization, waste ammonia liquor COD treatment, chemical by-product recovery

Yard water spraying,belt conveyor dust collection,laser dust monitoring

Flue gasdesulfurization &denitrification

Gas recovery, dustcollection, dusttreatment, slag recycling

Gas recovery, dustcollection, dusttreatment, slag recycling

Low-NOx burner,use of cleaner fuel

Waste acid & waste alkali treatment, waste oil recycling, coagulating sedimentation

Wastewatertreatment

Conversion to low-emissionvehicles

Flue gas, dust, wastewater(ammonia liquor)

Flue gas, dust,wastewater

Flue gas, slag, dust,wastewater

Flue gas, slag, dust,wastewater

Flue gas, dust Rolling wastewater,pickling wastewater

Coatingwastewater

Exhaust gas

Flue gas, dust, wastewater(ammonia liquor)

Dust, NOx, SOx Dust, SS Dust, SS NOx SS, waste oil,waste acid, iron salt

Metallic ion, etc. NOx, SPM (suspendedparticulate matter)

Gas turbine combined cycle power plant,Power plant fuel preheating device,High-efficiency air separation equipment

Sintering coolerwaste heatrecovery, line burner

Waste plasticsfeeding, pulverizedcoal injection, toppressure recoveryturbine, hot stovewaste heat recovery

Gas recovery,gas-sensibleheat recovery

Regenerativeburner, directcharging,low-temperatureextraction

Endless rolling,online heattreatment

Waste heat boiler,rotary regenerativeheat exchanger

Shortening oftransportation distance,improvement of loadefficiency, modal shift,application of IT

Loca

l com

mun

ity/O

ther

indu

strie

s/So

ciet

y

• Slag• Dust• Sludge

• Byproduct gas• Waste heat recovery steam• Power (BF Top pressure Recovery

Turbine: TRT)

Recovered energy recycling

Chemicalsubstances• Release 574 tons•Transfer 2,883 tons

CO2 Approx.63 million tonsFlue-gas• SOx 3.7 million m3

• NOx 11.9 million m3

• Dust

Dust

Dust

Recycling Process at the JFE Group

�8JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 20: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Reducing Sulfur Oxide (SOx) andNitrogen Oxide (NOx) Emissions

In an effort to control emissions of SOx and NOx, JFE Steel is actively pursuing the installation and usage of desulfurization equipment and denitrification equipment for major emissions sources.

Since dust is generated from various sources in the steel production process, JFE Steel has been promoting appropriate reduction measures by identifying individual sources and designing specific measures for each source.

Reducing Dust

‘95‘90‘85‘73 ‘80

6.05.87.1

36.8

‘00 ‘06 ‘07 ‘080

20

10

40

30

(million Nm3)

5.4 5.93.6 3.7 3.7

(年度)‘95‘90‘85‘73 ‘80

6.05.87.1

36.8

‘00 ‘06 ‘07 ‘080

20

10

40

30

(百万Nm3)

5.4 5.93.6 3.7 3.7

200

0

100

300

400

(Billions of yen)

385.3

‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 (Years ended March 31)

(Years ended March 31)‘95‘90‘85‘73 ‘80

13.712.315.3

34.6

‘00 ‘06 ‘07 ‘080

20

10

40

30

(million Nm3)

13.0 13.8 13.0 12.7 11.9

(年度)‘95‘90‘85‘73 ‘80

13.712.315.3

34.6

‘00 ‘06 ‘07 ‘080

20

10

40

30

(百万Nm3)

13.0 13.8 13.0 12.7 11.9

(Years ended March 31)

Transition of SOx Emissions Transition of NOx Emissions

Exhaust gas treatment equipment for sintering machine: an example of the activated coke method at the West Japan Works (Fukuyama)

Dust prevention fence at East Japan Works (Chiba)

Reducing Environmental Loads in Business Activities at JFE Steel

Air Quality Preservation

Reducing Environmental Loads in Business Activities

�9 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 21: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE Steel has been earnestly promoting circulation/recycling of industrial water consumed in the steel production process, with its industrial water circulation rate* maintained at as high a level as about 93%. For release into public waters, wastewater is given appropriate purification treatment so that its pollution loads can be reduced.

To prevent environmental abnormalities, JFE Steel constantly monitors the load on air and on water quality through a combination of methods like periodic batch analyses, continuous analyses by an automatic analyzer, and ITV-based remote monitoring.

Volume of industrial water received

‘00‘90 ‘95

210

94.1

214

93.4

220

93.3

‘06 ‘07 ‘080

200

100

400

300

(million t)

228

93.8

243

93.6

238

93.4

Industrial water circulation rate

94

93

92

91

90

(%)

(年度)‘00‘90 ‘95

210

94.1

214

93.4

220

93.3

‘06 ‘07 ‘080

200

100

400

300

(百万t)

228

93.8

243

93.6

238

93.4

工業用水循環率94

93

92

91

90

(%)

‘95‘90‘85‘73 ‘80

13.712.315.3

34.6

‘00 ‘06 ‘07 ‘080

20

10

40

30

(million Nm3)

13.0 13.8 13.0 12.7 11.9

(Years ended March 31)

(Years ended March 31)

‘00‘90 ‘95

3.53.2

‘06 ‘07(Years ended March 31)

‘080

2.0

1.0

4.0

3.03.3 3.2 3.2

3.7

(年度)‘00‘90 ‘95

3.53.2

‘06 ‘07 ‘080

2.0

1.0

4.0

3.0

(t/日)

3.3 3.2 3.23.7

(t/day)

Transition of Received Industrial Water and Circulation Rate

Transition of COD (Chemical Oxygen Demand)

Exhaust gas sampling

Remote surveillance of environmental data: an example from East Japan Works (Keihin)

Automatic wastewater analyzer: an example from East Japan Works (Chiba)

Wastewater treatment equipment: Example of denitrification equipment for wastewater at the East Japan Works (Chiba)

Water Quality Preservation

* Industrial water circulation rateIndustrial water circulation rate = (Total consumption - Received industrial water) /Total consumption

Environmental Surveillance

�0JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 22: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE Steel has been recycling byproducts (i.e., iron and steel slag*1, dust, and sludge*2) in the steel production process in the works as raw materials for steel manufacturing and has been promoting effective utilization of byproducts as resources. During the year ended March 31, 2009, JFE Steel took another step forward in its on-site recycling by starting up a roasting furnace for oil sludge in the Kurashiki region.

We practice appropriate storage of PCB waste in accordance with the law as well as disposal of such waste based on the schedule directed by the Japan Environmental Safety Corporation (JESCO).

Furthermore, for large transformers and other items exceeding JESCO‘s size limitations, we have developed and commercialized technology for on-site oil removal and disassembly, thereby, contributing to proper disposal.

Landfill disposal

‘04‘03‘02‘90 ‘95

11.0

99.3

8.5

99.5

9.5

99.3

96.5

‘05 ‘06 ‘07 ‘080

20

10

40

50

30

(10,000 t)

7.9

99.5

6.0 6.0 5.0 5.1

100

99

98

97

96

95

(%)

48.0 99.6 99.6 99.7 99.6

Recycling rate

Landfill disposal(Years ended March 31)

‘00‘90 ‘95

3.53.2

‘06 ‘07(Years ended March 31)

(Years ended March 31)

‘080

2.0

1.0

4.0

3.03.3 3.2 3.2

3.7

(t/day)

Transition of Landfill Disposal and Recycling Rate of Byproducts Roasting furnace for oil sludge started in the Kurashiki region

Oil removal test for large devices

*� Iron and steel slag: Material consisting of non-iron rock components in iron ore and lime, etc. It separates from and floats on the molten metal. Slag is mainly used as material for cement.

*� Sludge: Material remaining after dewatering of the mud-like substance separated and removed by circulating water/wastewater treatment equipment.

Effective Utilization of Byproducts

Appropriate Processing of PCB Waste

Reducing Environmental Loads in Business Activities

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 23: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE Steel has been promoting voluntarily release reduction program, which gives the first priority to chemical substances having higher toxicity and larger release amounts. Since the year ended March 31, 2002, total release into air and public waters has been reduced continuously.

Release into air and public waters

‘04‘02 ‘03‘01

843633

1,415

893

‘05 ‘06 ‘07(Years ended March 31)

‘080

1,000

3,000

2,000

(t)

1,053875 763

1,098

720 698 621

1,327

2,003

2,572

574

2,883

Landfill disposal

大気・公共用水域への排出量

(年度)‘04‘02 ‘03‘01

843633

1,415

893

‘05 ‘06 ‘07 ‘080

1,000

3,000

2,000

(t)

1,053875 763

1,098

720 698 621

1,327

2,003

2,572

574

2,883

最終処分量

(Years ended March 31)

Landfill disposal

‘04‘03‘02‘90 ‘95

11.0

99.3

8.5

99.5

9.5

99.3

96.5

‘05 ‘06 ‘07 ‘080

20

10

40

50

30

(10,000 t)

7.9

99.5

6.0 6.0 5.0 5.1

100

99

98

97

96

95

(%)

48.0 99.6 99.6 99.7

Recycling rate

(Years ended March 31)

Substances Reported under PRTR (The Year Ended March �009)

116252630404363686985

100132144145177178179198200207224227230231232253266283299304307309310311345346

01.4

000

370.2

1960.03

000

6212280.3

06.1

030

07.578

00

0.020

1.00

300000

0.070.0020.001

484

5.50.05

0.4000

0.20

0.90.2

000000

0.20.003

00

0.0400

0.30

2.30

0.0228

021

0.068.5

017

06.291

00000000000000000000000000000000000000

00000000000000000000000000000000000000

00000000000000000000000000000000000000

00

18.318.4

00.46.04.4

1,0483.90.30.3

000

0.13.4

00000

3.42103659

00

5300

7.10

3.30

9140

172,883

Zinc compounds (water-soluble)2-aminoethanolAntimony and its compoundsAsbestosBisphenol A type epoxy resin (liquid)EthylbenzeneEthylene glycolXyleneChromium and chromium (III) compoundsChromium (VI) compoundsHCFC-22Cobalt and its compoundsHCFC-141bHCFC-225DichloromethaneStyreneSelenium and its compoundsDioxinsHexamethylenetetramineTetrachloroethyleneCopper salts (water-soluble)1,3,5-TrimethylbenzeneTolueneLead and its compoundsNickelNickel compoundsHydrazinePhenolHydrogen fluoride and its water-soluble saltsBenzeneBoron and its compoundsPoly (oxyethylene) alkyl etherPoly (oxyethylene) nonylphenyl etherFormaldehydeManganese and its compoundsMercaptoacetic acidMolybdenum and its compounds

Substance

Total

Release

Total release 574 Total transfer 2,883

Air Public waters Soil on-site Landfill on-site Sewerage Off-siteTransfer

No.

116252630404363686985100132144145177178179198200207224227230231232253266283299304307309310311345346

01.4000370.21960.030006212280.306.103007.57800

0.0201.00300000

0.070.0020.001484

5.50.050.40000.200.90.20000000.2

0.00300

0.04000.302.30

0.02280210.068.501706.291

00000000000000000000000000000000000000

00000000000000000000000000000000000000

00000000000000000000000000000000000000

00

18.318.400.46.04.4

1,0483.90.30.30000.13.4000003.4210365900

53007.103.30

914017

2,883

亜鉛水溶性化合物2-アミノエタノールアンチモン及びその化合物石綿ビスフェノールA型エポキシ樹脂エチルベンゼンエチレングリコールキシレンクロム及び3価クロム化合物6価クロム化合物HCFC-22コバルト及びその化合物1,1-ジクロロ-1-フルオロエタン(HCFC-141b)ジクロロペンタフルオロプロパン(HCFC-225)ジクロロメタンスチレンセレン及びその化合物ダイオキシン類ヘキサメチレンテトラミンテトラクロロエチレン銅水溶性塩1,3,5-トリメチルベンゼントルエン鉛及びその化合物ニッケルニッケル化合物ヒドラジンフェノールふっ化水素及びその水溶性塩ベンゼンほう素及びその化合物ポリ(オキシエチレン)=アルキルエーテルポリ(オキシエチレン)=ノニルフェニルエーテルホルムアルデヒドマンガン及びその化合物メルカプト酢酸モリブデン及びその化合物

指定化学物質名

合計

排出量

排出量計 574 移動量計 2,883

大気 公共用水域 土壌 事業所内埋立 下水道 事業所外移動量政令

番号

Release into air and public waters

‘04‘02 ‘03‘01

843633

1,415

893

‘05 ‘06 ‘07(Years ended March 31)

‘080

1,000

3,000

2,000

(t)

1,053875 763

1,098

720 698 621

1,327

2,003

2,572

574

2,883

Landfill disposal

Zinc compounds (water-soluble)

2-aminoethanol

Antimony and its compounds

Asbestos

Bisphenol A type epoxy resin (liquid)

Ethylbenzene

Ethylene glycol

Xylene

Chromium and chromium (III) compounds

Chromium (VI) compounds

HCFC-22

Cobalt and its compounds

HCFC-141b

HCFC-225

Dichloromethane

Styrene

Selenium and its compounds

Dioxins

Hexamethylenetetramine

Tetrachloroethylene

Copper salts (water-soluble)

1,3,5-Trimethylbenzene

Toluene

Lead and its compounds

Nickel

Nickel compounds

Hydrazine

Phenol

Hydrogen fluoride and its water-soluble salts

Benzene

Boron and its compounds

Poly (oxyethylene) alkyl ether

Poly (oxyethylene) nonylphenyl ether

Formaldehyde

Manganese and its compounds

Mercaptoacetic acid

Molybdenum and its compounds

Total

Total release

Total transfer

No.

Release

Transfer

Substance

Air

Public waters

Soil on-site

Landfill on-site

Sewerage

Off-site

Release and Landfill Disposal

(Unit: tons/yr; dioxins: g-TEQ/yr)

Control/Release Reduction of Chemical Substances

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 24: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

In the office area, we do what we can to promote energy conservation by using a highly efficient Clathrate Hydrate Slurry (CHS) Heat Storage Air-conditioning System and turning off lights during lunch breaks. In the year ended March 31, 2009, we installed additional solar street lights at the Tsu-rumi Engineering & Manufacturing Center, adding to that installed the prior year, and adopted energy-saving equipment in remodeling the kitchen for the employee cafeteria.

In the production divisions, we took several measures such as reducing the amount of gas used for cutting and welding, and improving the ef-ficiency of our compressed air usage.

In the production divisions and office divisions together, the total amount of CO2 emissions was 16.8 thousand tons for the year ended March 31, 2009.

From August 2004 onward, we have been striv-ing to assess the amount of CO2 emissions for local construction sites. In addition, from the year ended March 31, 2007, we continue implementation of other activities designed to reduce CO2 output such as reducing occurrences of machine idling at con-struction sites.

INPUT OUTPUT

Raw materials

Energy

Electricity consumption

A-heavy oil

Kerosene

Light oil

Gasoline

Urban gas

LPG

LNG

Water

88,331 t

34,955,640 kWh

44.4 kl

69.0 kl

244.3 kl

24.0 kl

890,316.0 Nm3

256.6 t

0.0 t

169,389 t

Products

Air pollutants

CO2

NOx

SOx

Dust

Waste generated

Wastewater

Other (PRTR)

78,470 t

16,849 t

max 85 ppm

max – ppm

max 0.007 g/Nm3

1,636.5 t

260,921.2 t

223,600 kg

JFE Engineering

• Tsurumi Engineering and Manufacturing Center

• Shimizu Works

• Tsu Works

(1,000 t-CO2)

5

0

10

20

15

‘90

16.8

‘04 ‘05

16.4

‘07‘06

16.815.3

‘08‘03

14.014.5

13.9

(千t-CO2)

(年度)

5

0

10

20

15

‘90

16.8

‘04 ‘05

16.4

‘07‘06

16.815.3

‘08‘03

14.014.5

13.9

(1,000 t-CO2)(Years ended March 31)

(Years ended March 31)

Transition of CO� Emissions

Material Balance for the Year Ended March �009

Solar street lights

Global Warming Prevention

Reducing Environmental Loads in Business Activities at JFE Engineering

JFE Engineering constructs environmental manage-ment systems in line with the function and activities of each production center and is promoting activi-ties to reduce environmental loads.

Reducing Environmental Loads in Business Activities

23 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 25: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE Engineering strives to reduce generation and discharge of waste.The office divisions have carried out educational activities through on-site broadcasting and posters, etc., as well as more segmented sorting for the pur-pose of reducing the landfill disposal rate of office waste.

The production divisions have worked on thor-ough sorting, complete sorting and effective use of recyclable waste, and recycle patrol to check sorting conditions.

The planning and designing divisions have been making environment-friendly plans and designs by adopting recycling materials or selecting energy-saving equipment, etc.

In compliance with the Pollutant Release and Transfer Register (PRTR) Law, JFE Engineering controls release and transfer volumes of the designated chemical substances and reports those figures to the national government through local governing bodies. The company has been promoting activities to reduce controlled substances, including paints, solvents, and gasoline.

(kg)

Reduction of Waste (The Year Ended March �009)

Waste recycling in offices

Recycling rate in offices Target Actual

Tsurumi Center (%) 96 97.8

Shimizu Works (%) 97.6 98.1

Tsu Works (%) implementing in the production division.

Waste recycling in the production divisions

Recycling rate in the production divisions Target Actual

Tsurumi Center (%) 50 48.4

Shimizu Works (%) 15 21.4

Tsu Works (%) 28 20.4

Waste recycling at construction sites

Recycling rate at construction sites Target Actual

Construction work sites (%) 73 85.9

No. SubstanceRelease Transfer

Air Publicwaters

Soil on-site

Landfill on-site

Sewe-rage Offsite

30 Bisphenol A type epoxy resin 0.0 0.0 0.0 0.0 0.0 2,385.3

40 Ethylbenzene 47,476.3 0.0 0.0 0.0 0.0 3,932.063 Xylene 107,668.6 0.0 0.0 0.0 0.0 9,973.7

68Chromium and trivalent chromium compounds

0.0 0.0 0.0 0.0 0.0 210.0

227 Toluene 31,281.0 0.0 0.0 0.0 0.0 7,003.2

230 Lead and its compounds 0.0 0.0 0.0 0.0 0.0 247.0

232 Nickel compounds 0.0 0.0 0.0 0.0 0.0 342.0

311 Manganese and its compounds 0.0 0.0 0.0 0.0 0.0 13,104.2

Total

186,425.9 0.0 0.0 0.0 0.0 37,197.4

186,425.9 37,197.4

223,623.3

Substances Reported under PRTR (The Year Ended March �009)

Recycle patrol underway at the Tsurumi Engineering & Manufacturing Center

Area cleanup activities around the Tsurumi Engineering and Manufacturing Center

Reducing Generation of Waste

Control and Reduction of Chemical Substances

24JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 26: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

A breakdown of Universal Shipbuilding Corpo-ration’s energy-origin CO2 emissions shows that 86% are associated with electricity usage, 10% with petroleum usage, and 4% with gas usage. These figures remained unchanged over the past several years.

The company’s most pressing concern is to lower its electricity consumption, the great-est source of its energy-origin CO2 emissions. Toward that end, the production divisions are taking steps like turning off lights during lunch hours, reducing electricity consumed by welding equipment standing by for use, and replacing electrical equipment with energy-conserving options. The office divisions are doing things like turning off lights during lunch hours, turning off computers when not in use, and adjusting thermostats to use air condition-ers and heaters less.

Total electricity consumption of production and office divisions for the year ended March 31, 2009 came to 149,237 MWh, 6,659 MWh less than in the previous year. The comple-tion and delivery of an LNG carrier by the Tsu Shipyard accounted for much of this decrease. A slight decrease in electricity consumption per work hour (MWh/kh), versus the prior year, also helped.

Simultaneous with efforts to reduce elec-tricity consumption, the company is also proactively engaged in activities such as turn-ing off the engines of shipyard vehicles and trucks when idling, shutting off gas mains at the completion of work, etc. in order to reduce wastage of petroleum and gas.

Universal Shipbuilding Corporation has built envi-ronmental management systems tailored to the functions and operations of individual shipyards in an effort to lower its environmental burden.

INPUT OUTPUT

Raw materials

Energy

Electricity consumption

A-heavy oil

Kerosene

Light oil

Gasoline

Urban gas

LPG/LNG

Water

Products

Air pollutants

CO2

NOx

SOx

Waste generated

Recycling rate

502,600 t

72,644 t

79 t

54,021 t

85.7 %

Universal Shipbuilding

• Ariake Shipyard

• Tsu Shipyard

• Maizuru Shipyard

• Keihin Shipyard

• Innoshima Shipyard

542,800 t

149,237 MWh

596 kl

392 kl

1,643 kl

101 kl

100 Km3

845 t

1,530,000 t

8

4

0

16

(MWh/kh)

12

‘05‘03 ‘04 ‘06 ‘07

155,896

‘08

50,000

100,000

150,000

200,000

0

(MWh)

131,869

Electricity consumed per work hour

147,662147,717 149,237137,743

(Years ended March 31)

Electricity consumption

CO2 emissions

1.00

0

3.00

6

2.0012

18

‘05‘95 ‘06

15.9

‘07

14.0

‘08

15.815.6

1.000.84

1.37

1.43

2.62

0

(1,000 t-CO2)

11.6

Capacity utilization index unit

(Years ended March 31)

8

4

0

16

(MWh/kh)

12

‘05‘03 ‘04 ‘06 ‘07

155,896

‘08

50,000

100,000

150,000

200,000

0

(MWh)

131,869

Electricity consumed per work hour

147,662147,717 149,237137,743

(Years ended March 31)

Electricity consumption

Electricity Consumption

Material Balance for the Year Ended March �009

Global Warming Prevention

Reducing Environmental Loads in Business Activities at Universal Shipbuilding

Reducing Environmental Loads in Business Activities

25 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 27: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Universal Shipbuilding Corporation is working to reduce the generation and discharge of waste.

For this purpose, the production divisions are putting out more garbage receptacles for separated waste, conducting patrols, and taking other steps to help ensure that garbage is prop-erly separated, reused, and recycled. The office divisions are reusing wastepaper and thoroughly separating garbage in a bid to dispose of less and recycle more.

Despite these efforts, however, combined waste discharges from the production and of-fice divisions came to 54,021 tons for the year ended March 31, 2009, an increase of 2,650 tons compared to the previous year, while waste discharged per unit of work time (t/1,000 hrs) also increased slightly from the prior year.

On a positive note, the waste recycling rate increased significantly to 85.7% from 83.7% last year.

Universal Shipbuilding Corporation considers fuel leaks to be a significant source of marine environmental pollution and conducts regular training to prevent accidents and minimize damage.

In compliance with the Pollutant Release and Transfer Register (PRTR) Law, Universal Ship-building controls release and transfer volumes of the designated chemical substances and reports those figures to the national government through local governing bodies. The company has been promoting activities to reduce controlled sub-stances, including paints, solvents, and gasoline.

As a shipbuilder, Universal Shipbuilding pays particular attention to monitoring releases and transfers of three key substances, namely ethyl-benzene, xylene, and toluene that are important for painting work.

(%)

60

40

20

0

100

80

‘05‘03 ‘04 ‘06 ‘07

51,371

‘08

83.6 82.681.5 84.2 83.7

30,000

15,000

45,000

60,000

75,000

0

(t) Recycling rate

85.7

54,147 54,308 54,02153,760 55,502

‘05‘03 ‘04 ‘06 ‘07

51,371

‘08

83.6 82.681.5 84.2 83.7

30,000

15,000

45,000

60,000

75,000

0

(t) リサイクル率

85.7

54,147 54,308 54,02153,760 55,502

CO2 emissions

1.00

0

3.00

6

2.0012

18

‘05‘95 ‘06

15.9

‘07

14.0

‘08

15.815.6

1.000.84

1.37

1.43

2.62

0

(1,000 t-CO2)

11.6

Capacity utilization index unit

(Years ended March 31)

(Years ended March 31)

Discharge volume

Transition of Waste Discharge

Atmospheric releases

Transfers to off-site locations

Three key substances

Year ended March 31,

2008

Year ended March 31,

2009

Year ended March 31,

2008

Year ended March 31,

2009

Ethylbenzene 314 298 19 20

Xylene 801 968 52 70

Toluene 235 404 16 29

Total 1,350 1,670 87 119

Conditions of Three Key Substances (t/yr.)

Training to respond to fuel leaks

Reducing Generation/Discharge of Waste

Control and Reduction of Chemical Substances

Zero Fuel Leak Campaign

26JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 28: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Through measures like improving the operation of air-conditioning equipment and reducing the number of production units in operation, Kawasaki Microelectronics managed to achieve a 3% energy saving rate*. Despite that positive result, however,

Kawasaki Microelectronics is almost achieving its goal of recycling all sludge generated from its waste-water treatment facilities. A 71% recycling rate was achieved for the year ended March 31, 2009.

In the year ended March 31, 2009, Kawasaki Microelectronics eliminated all use of Tri-n-butyl phosphate and improved a product cleaning method to reduce its use of hydrogen fluoride. Both of these chemicals are PRTR substances.

the company’s energy-origin CO2 emissions in-creased because of an unfavorable change in the CO2 conversion coefficient for electricity.

Plans to use an alternative to PFC gas (C2F6 gas), which has powerful greenhouse effects, had to be revised because supplies of the substitute gas were discontinued. A new substitute gas was approved for use in February 2009.

CO2 emissions

1.00

0

3.00

6

2.0012

18

‘05‘95 ‘06

15.9

‘07

14.0

‘08

15.815.6

1.000.84

1.37

1.43

2.62

0

(1,000 t-CO2)

11.6

CO2排出量

1.00

0

3.00

(年度)

6

2.0012

18

‘05‘95 ‘06

15.9

‘07

14.0

‘08

15.815.6

1.000.84

1.37

1.43

2.62

0

(千t-CO2)

11.6

操業負荷あたりのCO2排出量(95年を1とした場合)

Capacity utilization index unit

(1,000 t-CO2)CO2 emissionsCapacity utilization index unit(Years ended March 31)

(Years ended March 31)

Energy-Origin CO� Emissions

INPUT OUTPUT

Total energy

Electricity

Gas

Coal and oil

PFC purchase (CO2 equivalent)

Chemical purchase

Water usage

Resource input (raw material)

CO2

PFC emissions (CO2 equivalent)

SOx

NOx

Wastewater

Waste generated

Chemical emissions/transfer

Products

16x103 t-CO2

23x103 t-CO2

263.8 m3

1,351 m3

181x103 m3

1,309 t

2.2 t

1.22 t

KawasakiMicroelectronics

• Utsunomiya Works

0.347 PJ

33.7x106 kWH

4 t

550 kl

44x103 t-CO2

5,400 t

178x103 m3

1.23 t

Material Balance for the Year Ended March �009

30

40

20

10

50

‘05‘95 ‘06

33.8

‘07

22.5

‘08

22.5

44.4

0

(1,000 t-CO2)

14

(年度)

30

40

20

10

50

‘05‘95 ‘06

33.8

‘07

22.5

‘08

22.5

44.4

0

(千t-CO2)

14

(Years ended March 31)

CO� Equivalent Emissions of PFC, HFC and SF� Gases

(kg)

No. SubstanceRelease Transfer

Air Publicwaters

Soil on-site

Landfill on-site

Sewe-rage Offsite

283 Hydrogen fluoride and its water-soluble salts 80 690 0 0 0 990

Total 770 990

Substances Reported under PRTR (The Year Ended March �009)

Reducing Environmental Loads in Business Activities at Kawasaki Microelectronics

* Energy saving ratePercentage of energy saving effect for the fiscal year relative to energy consumption (crude oil equivalent) in the works as a whole

Global Warming Prevention

Reducing Generation/Discharge of Waste

Control and Reduction of Chemical Substances

Reducing Environmental Loads in Business Activities

27 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 29: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE Urban Development is working to make condominiums more energy efficient.

Energy-Saving LightingThe company has begun to use energy-saving, long-life LED lighting in the entrance ways, corridors, and other common areas of condo-minium projects.

Controlling CO� EmissionsTHINK has installed highly energy-efficient air-conditioning systems, and is upgrading and ret-rofitting facilities and equipment in its effort to reduce its energy usage.

Energy-Saving Construction MaterialsAt its Grand Scena Yamato Premium Fort con-dominium project, the company used double-pane glass to improve the thermal insulation performance of windows. It also took steps like using bathtubs with high heat-retaining performance to lower the project’s environ-mental load.

Reducing Waste Generation and DischargeThe JFE Urban Development Group manages and operates the THINK (Techno Hub Innova-tion Kawasaki), a science park, and the Orto Yokohama, a multipurpose commercial build-ing. At both of these facilities, the company separates waste related to building operations into categories like paper, metal cans, glass containers, and kitchen waste, and measures the volumes of each. The company also works to reduce waste generation and recycle the collected waste.

3

0

6

9

12

‘04 ‘05

6.3

‘06

5.9

‘07

5.8

‘08‘03

(1,000 t-CO2)

Figures for the year ended March 31, 2006 or later exclude energy management data under the authority of tenants.

11.210.8

5.6

3

0

6

9

12

(年度)‘04 ‘05

6.3

‘06

5.9

‘07

5.8

‘08‘03

(千t-CO2)

※2005年度以降のデータはエネルギー管理権原がテナントにあるものを除いた値。

11.210.8

5.6

(Years ended March 31)

CO2 Emissions at THINK(1,000 t-CO2)(Years ended March 31)Figures for the year ended March 31, 2006 or later exclude energy management data under the authority of tenants.

Grand Scena Premium Fort

Facility Waste Recycling Rate

Waste recycling rate Year ended March 31, 2008 Year ended March 31, 2009

THINK 49.3% 55.4%

Orto Yokohama 46.6% 48.5%

CO� Emissions at THINK

THINK (Techno Hub Innovation Kawasaki)

LED lighting in the common areas of the Shinkawa 2-chome Project (tentative)

Heat-retaining bathtub Double-pane glass for windows

Reducing Environmental Loads in Business Activities at JFE Urban Development

Recycling Waste and Reducing Energy Consumption at Company-Operated Facilities

Use of Energy-Saving Facilities and Construction Materials in Condominium Business

Reducing Environmental Loads in Business Activities

28JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 30: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

C h a l l e n g i n g S p i r i t

F l e x i b i l i t y

S i n c e r i t y

C h a l l e n g i n g S p i r i t

F l e x i b i l i t y

S i n c e r i t y

Providing Society with Steel Products, Engineering Technologies, and Recycling Businesses, All of Which Contribute to Global Environmental Protection

R&D of Environmental Conservation Technology

JFE's Technologies Contribute to Global Environmental Protection

Recycling Technology Supporting a Sustainable Society

Reducing Environmental Loads through Products and Technologies

30

31

37

Providing Society with Steel Products, Engineering Technologies, and Recycling Businesses, All of Which Contribute to Global Environmental Protection

R&D of Environmental Conservation Technology

JFE's Technologies Contribute to Global Environmental Protection

Recycling Technology Supporting a Sustainable Society

Reducing Environmental Loads through Products and Technologies

30

31

37

�9 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 31: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Ferro-coke is a highly reactive formed coke pro-duced by carbonizing low-grade coal mixed with iron. Replacing some of the coke used in blast fur-naces with ferro-coke greatly reduces coke usage. Thus, ferro-coke is expected to save energy, cut CO2 emissions, and conserve resources.

Biomass fuel is carbon neutral and, therefore, good for the environment. JFE Engineering is moving forward with the development of technology for thermally decomposing wood-based biomass rap-idly and producing a liquid biomass fuel. This fuel has drawn praise for its practicality as a substitute for heavy fuel oil.

Universal Shipbuilding Corporation installs “SSD” and “Surf Bulbs” as propulsion efficiency improve-ment devices on nearly all the ships it builds, increas-ing their propulsion efficiency by 6%–13%. In the case of Very Large Crude Carriers (VLCCs), which are at sea around 200 days a year, a 10% improvement in propulsion efficiency equates to a CO2 emission reduction of about 6,000 tons per ship.

JFE’s electrical steel sheet with low loss contributes to reducing the size and weight of vehicle motors as well as improving fuel efficiency. Super Core is the electrical steel with Si content as high as 6.5%, which was previ-ously impossible to manufacture using the convention-al rolling method. JFE has succeeded in manufacturing this product in an industrial scale for the first time in the world using a siliconization technology (CVD process). Super Core brings such benefits as high efficiency and low noise in power booster systems.

Low-grade

iron ore

Low-gradecoal

Crusher

BlastfurnaceHeater

Gas purifier Factory

Briquettingmachine

Coolingtuyere

High-temperature

tuyere

Shaft furnace

Low-temperature

tuyere

Ferro-coke

Mixer

Low-grade

iron ore

Low-gradecoal

Crusher

BlastfurnaceHeater

Gas purifier Factory

Briquettingmachine

Coolingtuyere

High-temperature

tuyere

Shaft furnace

Low-temperature

tuyere

Ferro-coke

Mixer

All PSC plants

Boilerfacilities

Vacuum condenser

Exhauststack

Inductionfan

Sintering machine

Cooler

Cooling fan

Power supply from theoutside resource

Turbine

Power generation facilities

Power supply from generator

Steam drum

Deionized watertreatment

Generator

Ferro-Coke Production Process Using Low-Grade Raw Materials

Impact of Material Core Loss on Motor Efficiency

Liquid biomass fuel

Flammable gas

Entrained-bed flashpyrolysis system

Carrier gas(steam, etc.)

Biomass

Air

Char

Condenser

Liquid biomass fuel

Flammable gas

Entrained-bed flashpyrolysis system

Carrier gas(steam, etc.)

Biomass

Air

Char

Condenser

Pyro

lysis

secti

onHe

at ge

nera

tion

secti

on

Cyclo

ne

CyclonePyrolysissection

Heatgeneration

section

Generation of Liquid Biomass Fuel Using Entrained-bed Flash Pyrolysis Technology

Core loss of materials used for motors (W/kg) (the core loss at 400 Hz, 1 T(=10 kG) when the magnetic flux is excited on sine wave)

Materials with lower core loss

92

91

90

89

88

87

8610 20 30 40 50 60 70

モータ効率(%)

鉄心材料の鉄損(W/kg)

92

91

90

89

88

87

8610

Motorefficiency

(%)

Core loss of materials used for motors (W/kg) (the core loss at 400Hz, 1T(=10kG) when the magnetic flux is excited on sine wave)

Materials with lower core loss

92

91

90

89

88

87

8610 20 30 40 50 60 70

Motorefficiency

(%)

Propulsion efficiency improvement device installed on a ship

Takashi AnyashikiSenior ResearcherIronmaking Research DepartmentSteel Research Laboratory

Akira FujitaSenior ResearcherElectrical Steel Research Department Steel Research Laboratory

Seiji MasudaSenior ResearcherHydrodynamics Engineering LabUniversal ShipbuildingTechnical Research Center

Surf Bulb

SSD

Seiji KinoshitaSenior ResearcherEnvironmental Technology Research DepartmentJFE EngineeringEngineering Research Center

R&D of Environmental Conservation Technology

Steelmaking TechnologyDevelopment of Ferro-Coke Production Process

Electrical Steel Sheets for Hybrid/Electric VehiclesNon-oriented electrical steel sheets used for motorsSuper Core with Si content of 6.5% used for power booster systems

Development of a New Technology for Generating Biomass FuelHelping to Cut CO2 Emissions

Energy-Saving Devices for Ships

Reducing Environmental Loads through Products and Technologies

�0JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 32: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

POINT

Protecting the Environment with Heavy Metal- Free Products

Highly-lubricated automotive galvannealed (GA) steel sheets“JAZ® (JFE Advanced Zinc)”

Trailing arm

Seat frame leg

Drive shaftStabilizer

Lower arm

Rear axle beam

A GA steel sheet* offers improved press formability through optimization of its nano-level surface structure. It is favorable for automobile side panels, fenders, doors, and wheel housings as well as other difficult-to-form outer panels and various inner panels.

JFE Steel has seen steadily growing demand for its high tensile strength steel sheet (HITEN) as a material that helps to make lighter cars. In recent years, however, the company has also seen upticks in demand for even stronger 980-MPa Ultra HITEN with outstanding workability and has brought processed tube products to market.

This product is an environment-friendly coated steel sheet that contains no chrome (VI). Its surface is coated with a proprietary composite film (consisting of a special organic resin and inor-ganic substances) for corrosion resistance equivalent to that of existing products. Customers use this new product, for example, to make interior panels for home appliances and interior compo-nents for OA and AV equipment.

HISTORY (High Speed Tube Welding and Optimum Reducing Technology), a high-performance electric resistance-welded steeltube, has outstanding strength and workability. Using this prod-uct to make hollow automobile components results in lighter cars .

Amid rising concerns regarding the depletion of rare metals, such as nickel and molybdenum, JFE Steel became the world’s first company to develop high corrosion resistant ferrite stainless steel sheet “JFE443CT” that offers corrosion resistance equiva-lent to that of ordinary stainless steel SUS304, without using any nickel or molybdenum.

Using its advanced solidification technology, JFE Steel is manu-facturing polycrystalline wafers offering world-class energy conversion efficiency (approx. 17%). The company is also apply-ing highly sophisticated metallurgical technologies, such as elec-tron beam refining and vacuum plasma melting, to manufacture the highest grade of solar grade (SOG) silicon in the world.

Sliding characteristics of our innovative products (Sliding test with flat sheets before processing)

Goo

d

Fri

ctio

n co

effic

ient

B

ad

Our conventional lubricant GA

GA New technology “JAZ”

0.18

0.16

0.14

0.12

Anti-corrosion steel sheets with excellent press formability

Environmentally friendly and heavy metal free

A material used for solar batteries, critical for fighting against global warming

Achieves the world’s highest level of conversion efficiency

Silicon block

JFE's Technologies Contribute to Global Environmental Protection

Helping to Make Cars Lighter and Safer

Ultra High Tensile Strength Steel

POINT

Environmental Friendliness and High Corrosion Resistance

Chromate-Free Coated Steel Sheet

Outstanding Strength and Workability

Automotive Steel Tubes "HISTORY”

No Use of Rare Metals

Resource-Saving Type Stainless Steel Sheet

*Electric resistance-welded steel tube: a tube formed from steel strips by electric resistance welding

1,200 t actual press test (Fender model)

Example of an application of 980-MPa tube in a front pillar reinforcing component. The smaller cross section realizes better front visibility.

* GA steel sheet is an abbreviation of “galvannealed steel sheet.”

Achieved the World’s Highest Level of Conversion Efficiency

Silicon Wafer for Solar Batteries

http://www.jfe-steel.co.jp/products/car/products/surface/jaz/index.html

http://www.jfe-steel.co.jp/release/2006/07/060726.html

http://www.jfe-steel.co.jp/products/usuita/aenmekki/JC.html

http://www.jfe-steel.co.jp/products/car/products/sheets/WQhiten/index.html

http://www.jfe-steel.co.jp/products/car/products/pipe/history/index.html

http://www.jfe-steel.co.jp/products/stainless/index.html

Cross-sectionalshape

Polycrystalline silicon wafers for solar batteries

Reducing Environmental Loads through Products and Technologies

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 33: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

POINT

Protecting the Environment with Heavy Metal- Free Products

Highly-lubricated automotive galvannealed (GA) steel sheets“JAZ® (JFE Advanced Zinc)”

Trailing arm

Seat frame leg

Drive shaftStabilizer

Lower arm

Rear axle beam

A GA steel sheet* offers improved press formability through optimization of its nano-level surface structure. It is favorable for automobile side panels, fenders, doors, and wheel housings as well as other difficult-to-form outer panels and various inner panels.

JFE Steel has seen steadily growing demand for its high tensile strength steel sheet (HITEN) as a material that helps to make lighter cars. In recent years, however, the company has also seen upticks in demand for even stronger 980-MPa Ultra HITEN with outstanding workability and has brought processed tube products to market.

This product is an environment-friendly coated steel sheet that contains no chrome (VI). Its surface is coated with a proprietary composite film (consisting of a special organic resin and inor-ganic substances) for corrosion resistance equivalent to that of existing products. Customers use this new product, for example, to make interior panels for home appliances and interior compo-nents for OA and AV equipment.

HISTORY (High Speed Tube Welding and Optimum Reducing Technology), a high-performance electric resistance-welded steeltube, has outstanding strength and workability. Using this prod-uct to make hollow automobile components results in lighter cars .

Amid rising concerns regarding the depletion of rare metals, such as nickel and molybdenum, JFE Steel became the world’s first company to develop high corrosion resistant ferrite stainless steel sheet “JFE443CT” that offers corrosion resistance equiva-lent to that of ordinary stainless steel SUS304, without using any nickel or molybdenum.

Using its advanced solidification technology, JFE Steel is manu-facturing polycrystalline wafers offering world-class energy conversion efficiency (approx. 17%). The company is also apply-ing highly sophisticated metallurgical technologies, such as elec-tron beam refining and vacuum plasma melting, to manufacture the highest grade of solar grade (SOG) silicon in the world.

Sliding characteristics of our innovative products (Sliding test with flat sheets before processing)

Goo

d

Fri

ctio

n co

effic

ient

B

ad

Our conventional lubricant GA

GA New technology “JAZ”

0.18

0.16

0.14

0.12

Anti-corrosion steel sheets with excellent press formability

Environmentally friendly and heavy metal free

A material used for solar batteries, critical for fighting against global warming

Achieves the world’s highest level of conversion efficiency

Silicon block

JFE's Technologies Contribute to Global Environmental Protection

Helping to Make Cars Lighter and Safer

Ultra High Tensile Strength Steel

POINT

Environmental Friendliness and High Corrosion Resistance

Chromate-Free Coated Steel Sheet

Outstanding Strength and Workability

Automotive Steel Tubes "HISTORY”

No Use of Rare Metals

Resource-Saving Type Stainless Steel Sheet

*Electric resistance-welded steel tube: a tube formed from steel strips by electric resistance welding

1,200 t actual press test (Fender model)

Example of an application of 980-MPa tube in a front pillar reinforcing component. The smaller cross section realizes better front visibility.

* GA steel sheet is an abbreviation of “galvannealed steel sheet.”

Achieved the World’s Highest Level of Conversion Efficiency

Silicon Wafer for Solar Batteries

http://www.jfe-steel.co.jp/products/car/products/surface/jaz/index.html

http://www.jfe-steel.co.jp/release/2006/07/060726.html

http://www.jfe-steel.co.jp/products/usuita/aenmekki/JC.html

http://www.jfe-steel.co.jp/products/car/products/sheets/WQhiten/index.html

http://www.jfe-steel.co.jp/products/car/products/pipe/history/index.html

http://www.jfe-steel.co.jp/products/stainless/index.html

Cross-sectionalshape

Polycrystalline silicon wafers for solar batteries

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 34: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Uses a fluid with cold storage capacity twice thatof water to realize energy savings and reduced CO2 emissions

Suited for use in underground shopping malls, commercial buildings, and a wide variety of other facilities

Reduces CO2 emissions from air conditioning by 40% (Azalea underground shopping mall in Kawasaki)

The high-efficiency engine of this system converts digestive gases, generated from sludge digestion tanks at sewerage treatment plants, into electricity and thermal energy.

This system uses a circulating fluidized bed boiler in which air is injected to increase combustion efficiency. This type of boiler efficiently converts carbon-neutral biomass fuel into electricity and thermal energy.

JFE Engineering recovers Volatile Organic Compounds (VOCs), which are usually released when crude oil is shipped, and uses them as an energy source after removing odorous components.

These breakwaters allow for the exchange of seawater, thereby preserving harbor water quality.

Carbon-neutral wood chip biomass is fueling boilers and, thereby, reduces the use of fossil fuels and helps in the fight against global warming. The wood chip biomass gasification system uses forest thinnings, construction waste, and other inexpensive wood materials to make combustible gas, tar, and other general-purpose fuels. This system uses biomass to create fuels for gas engines used to generate power and for existing industrial furnaces—applications previously thought to be too technically difficult to incorporate biomass systems.

http://www.jfe-eng.co.jp/product/environment_energy/environment_energy1121.html

http://www.jfe-eng.co.jp/product/environment/environment2246.html

http://www.jfe-eng.co.jp/product/energy/energy3421.html

http://www.jfe-eng.co.jp/product/instruct/instruct4421.html

http://www.jfe-eng.co.jp/product/environment_energy/environment_energy1111.html

http://www.jfe-eng.co.jp/product/environment_energy/environment_energy1211.html

The CHS air conditioning system uses a hydrate slurry that can store over twice the amount of cold energy as water used in con-ventional air conditioning systems. Having first been introduced in office buildings in the year ended March 31, 2006, this system is now being used in underground shopping malls, large com-mercial buildings, factories, and a wide variety of other facilities.

From Sewerage to Energy

Sewerage Sludge Digestive Gas Power Generation

Helping to Cut CO2 Emissions

Biomass Boiler System

Using VOCs as Energy

VOC Recovery Equipment

Preventing Declines in Water Quality

Seawater Exchange-type Hybrid Caisson

POINT

Carbon Neutral Eco-Energy

Wood Chip Biomass Gasification System for Power Generation (Licensed by Voelund)

JFE's Technologies Contribute to Global Environmental Protection

POINT

Sufficient Energy-Saving and CO2 Emission Reductions

Clathrate Hydrate Slurry (CHS) Heat Storage Air Conditioning System

Prime Minister Aso examining the CHS air conditioning system installed in the Azalea underground shopping mall in Kawasaki.

Wood chip biomass fuels engines and industrial furnaces Eco-energy helps to prevent global warming Overall energy efficiency of 80% plus

Reducing Environmental Loads through Products and Technologies

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 35: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Uses a fluid with cold storage capacity twice thatof water to realize energy savings and reduced CO2 emissions

Suited for use in underground shopping malls, commercial buildings, and a wide variety of other facilities

Reduces CO2 emissions from air conditioning by 40% (Azalea underground shopping mall in Kawasaki)

The high-efficiency engine of this system converts digestive gases, generated from sludge digestion tanks at sewerage treatment plants, into electricity and thermal energy.

This system uses a circulating fluidized bed boiler in which air is injected to increase combustion efficiency. This type of boiler efficiently converts carbon-neutral biomass fuel into electricity and thermal energy.

JFE Engineering recovers Volatile Organic Compounds (VOCs), which are usually released when crude oil is shipped, and uses them as an energy source after removing odorous components.

These breakwaters allow for the exchange of seawater, thereby preserving harbor water quality.

Carbon-neutral wood chip biomass is fueling boilers and, thereby, reduces the use of fossil fuels and helps in the fight against global warming. The wood chip biomass gasification system uses forest thinnings, construction waste, and other inexpensive wood materials to make combustible gas, tar, and other general-purpose fuels. This system uses biomass to create fuels for gas engines used to generate power and for existing industrial furnaces—applications previously thought to be too technically difficult to incorporate biomass systems.

http://www.jfe-eng.co.jp/product/environment_energy/environment_energy1121.html

http://www.jfe-eng.co.jp/product/environment/environment2246.html

http://www.jfe-eng.co.jp/product/energy/energy3421.html

http://www.jfe-eng.co.jp/product/instruct/instruct4421.html

http://www.jfe-eng.co.jp/product/environment_energy/environment_energy1111.html

http://www.jfe-eng.co.jp/product/environment_energy/environment_energy1211.html

The CHS air conditioning system uses a hydrate slurry that can store over twice the amount of cold energy as water used in con-ventional air conditioning systems. Having first been introduced in office buildings in the year ended March 31, 2006, this system is now being used in underground shopping malls, large com-mercial buildings, factories, and a wide variety of other facilities.

From Sewerage to Energy

Sewerage Sludge Digestive Gas Power Generation

Helping to Cut CO2 Emissions

Biomass Boiler System

Using VOCs as Energy

VOC Recovery Equipment

Preventing Declines in Water Quality

Seawater Exchange-type Hybrid Caisson

POINT

Carbon Neutral Eco-Energy

Wood Chip Biomass Gasification System for Power Generation (Licensed by Voelund)

JFE's Technologies Contribute to Global Environmental Protection

POINT

Sufficient Energy-Saving and CO2 Emission Reductions

Clathrate Hydrate Slurry (CHS) Heat Storage Air Conditioning System

Prime Minister Aso examining the CHS air conditioning system installed in the Azalea underground shopping mall in Kawasaki.

Wood chip biomass fuels engines and industrial furnaces Eco-energy helps to prevent global warming Overall energy efficiency of 80% plus

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 36: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Shipping forecast center

Shippingforecast data

Shipboard system

Optimum route search

Monitoring

Maintenance and control

Inland data center (IDC)

Monitoring report

Maintenance andcontrol report

Shippingforecast data

Minimum time route

Great-circle route

Minimum fuel consumption route

Optimizing shipping routes can effectively reduce the fuel consumption, as well as by improving vessel shapes and propul-sion performance. Sea-Navi®, a voyage support system that takes its name from a car navigation system, is designed for this purpose. Before leaving port, the system provides the best routing plan considering fuel consumption, punctuality, and safety. While the vessel is underway, the system can adjust the plan depending on the conditions which are always changeable, as well as displaying the results of fatigue life evaluation of the hull structure and a recommended maintenance plan.

Fine spherical graphite powder is used in making high-performance anodes for lithium ion secondary batteries, which are in great demand for use in hybrid and electric cars. JFE Chemical uses proprietary technology to make its fine spherical graphite powder from coal-tar pitch, a steel manufacturing byproduct. Its high crystallinity with large packing density helps to significantly increase battery capacity and service life.

The Ax-Bow and LEADGE-Bow designs have been pioneered over the past 10 years. The designs specifically improve the efficiency of operation on actual sea surfaces. Ships employing the Ax-Bow and LEADGE-Bow lose less speed when cutting through waves and, therefore, have better fuel efficiency.

JFE Steel developed the gas tank (13- capacity, 190-mm diameter, 840-mm length, 35 MPa) and related systems for a turret cart powered by hydrogen fuel cells. Turret carts are used to transport goods in fresh food markets and within factories. With fuel cells increasingly being used in transporta-tion, medical, and environmental applications, the company aims to contribute in a wide variety of ways based on its high-pressure gas tank technology.

POINT

Voyage Support System

“Sea-Navi®”

Cape-size bulker “CAPE SALVIA”

Helping to Build a Fuel Cell Society

Hydrogen Gas Tanks

Support for Lithium Ion Secondary Batteries

Fine Spherical Graphite Powder

Fine spherical graphite powder

Hydrogen gas tanks up close (under the cargo bed)

POINT

A New Bow Shape Improves Performance

Ax-Bow and LEADGE-Bow Enable Higher Performance in Real Sea Conditions

POINT

Turret cart equipped with hydrogen gas tanks

POINT

Lithium ion secondary batteries

http://www.jfe-chem.com/products/carbon/carbon01.htmlhttp://www.u-zosen.co.jp/recruit_info/newtech/

m1-2.html

http://www.u-zosen.co.jp/giken/review02.html

http://www.jfe-steel.co.jp/products/car/products/others/cylinder/index.html

http://www.jfecon.jp/product/g01.html

JFE's Technologies Contribute to Global Environmental Protection

Reduces increases in fuel consumption when cutting through waves and cuts greenhouse gas emissions

With strong support by ship owners, 100 ships with these designs are sailing the world’s seas

Improves the performance of lithium ion secondary batteries

Made from coal-tar pitch, a steel manufacturing byproduct

Optimizes ship navigation to reduce fuel consumptionRecommends optimum routes based on the weather

Two-year test under actual operating conditions in progress

Core high-pressure gas tank technology for a wide variety of needs

Currently testing a jointly developed fuel cell turret cart

Reducing Environmental Loads through Products and Technologies

�5 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 37: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Shipping forecast center

Shippingforecast data

Shipboard system

Optimum route search

Monitoring

Maintenance and control

Inland data center (IDC)

Monitoring report

Maintenance andcontrol report

Shippingforecast data

Minimum time route

Great-circle route

Minimum fuel consumption route

Optimizing shipping routes can effectively reduce the fuel consumption, as well as by improving vessel shapes and propul-sion performance. Sea-Navi®, a voyage support system that takes its name from a car navigation system, is designed for this purpose. Before leaving port, the system provides the best routing plan considering fuel consumption, punctuality, and safety. While the vessel is underway, the system can adjust the plan depending on the conditions which are always changeable, as well as displaying the results of fatigue life evaluation of the hull structure and a recommended maintenance plan.

Fine spherical graphite powder is used in making high-performance anodes for lithium ion secondary batteries, which are in great demand for use in hybrid and electric cars. JFE Chemical uses proprietary technology to make its fine spherical graphite powder from coal-tar pitch, a steel manufacturing byproduct. Its high crystallinity with large packing density helps to significantly increase battery capacity and service life.

The Ax-Bow and LEADGE-Bow designs have been pioneered over the past 10 years. The designs specifically improve the efficiency of operation on actual sea surfaces. Ships employing the Ax-Bow and LEADGE-Bow lose less speed when cutting through waves and, therefore, have better fuel efficiency.

JFE Steel developed the gas tank (13- capacity, 190-mm diameter, 840-mm length, 35 MPa) and related systems for a turret cart powered by hydrogen fuel cells. Turret carts are used to transport goods in fresh food markets and within factories. With fuel cells increasingly being used in transporta-tion, medical, and environmental applications, the company aims to contribute in a wide variety of ways based on its high-pressure gas tank technology.

POINT

Voyage Support System

“Sea-Navi®”

Cape-size bulker “CAPE SALVIA”

Helping to Build a Fuel Cell Society

Hydrogen Gas Tanks

Support for Lithium Ion Secondary Batteries

Fine Spherical Graphite Powder

Fine spherical graphite powder

Hydrogen gas tanks up close (under the cargo bed)

POINT

A New Bow Shape Improves Performance

Ax-Bow and LEADGE-Bow Enable Higher Performance in Real Sea Conditions

POINT

Turret cart equipped with hydrogen gas tanks

POINT

Lithium ion secondary batteries

http://www.jfe-chem.com/products/carbon/carbon01.htmlhttp://www.u-zosen.co.jp/recruit_info/newtech/

m1-2.html

http://www.u-zosen.co.jp/giken/review02.html

http://www.jfe-steel.co.jp/products/car/products/others/cylinder/index.html

http://www.jfecon.jp/product/g01.html

JFE's Technologies Contribute to Global Environmental Protection

Reduces increases in fuel consumption when cutting through waves and cuts greenhouse gas emissions

With strong support by ship owners, 100 ships with these designs are sailing the world’s seas

Improves the performance of lithium ion secondary batteries

Made from coal-tar pitch, a steel manufacturing byproduct

Optimizes ship navigation to reduce fuel consumptionRecommends optimum routes based on the weather

Two-year test under actual operating conditions in progress

Core high-pressure gas tank technology for a wide variety of needs

Currently testing a jointly developed fuel cell turret cart

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 38: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE manufactures recycled plastic boards (RECO board = Recycle ECO board) using container and packaging plastic recovered from household waste.

Municipalities collect container and packaging plastic as household waste. Foreign matter is then removed from this waste, which is then compressed into bales. These bales are transferred via the Japan Containers And Packaging Recycling Association to JFE and other companies that process the plastic into new products.

JFE uses the bales to manufacture RECO boards, which, as a wood substitute, helps to protect tropical rain forests and stop global warming.

NF Board®

Since 2002, JFE has been using pellets made from pulverized bales of container and packaging plastic to manufacture NF Boards® (12-mm thick) for use in concrete forms.

300,000 NF Boards® are used as a substitute for wooden forms at construction sites. Used NF Boards® are recovered and used instead of coke as a reducing agent in blast furnaces.

Development of Thin BoardsIn 2008, JFE perfected KG Panels as a lighter, thinner (5.5-mm thick) version of NF Boards®.

These thinner boards are now being used, for example, as election poster boards.

NF Board®

KG Panel used as an election poster board

NF Board® in use at a construction site

Recycling Technology Supporting a Sustainable Society

RECO Board (NF Board®, KG Panel)

Reducing Environmental Loads through Products and Technologies

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 39: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE is also involved in recycling various waste materials.

After safely recovering the mercury in used fluorescent tubes, we recycle these tubes into

raw glass and raw metal. We are also recycling used home electric

appliances and food waste to help bring about a resource-recycling society.

JFE has developed a zero-emission manufacturing process for recovering rare metals like nickel, molybdenum, and vanadium from substances like used catalysts from petroleum refineries. In

this way, we are contributing to the development of a recycling-oriented society that puts waste to effective use.

Roasting ore

Melting/separating process

Molybdenum and nickel recovery process

Roasting process

Vanadium recovery process

Roasting furnace

Ferroalloy electric furnace

Auxiliary materials

Products

• Lime• Steel scraps, etc.

Ferro-molybdenum/ferro-nickel

Ferro-vanadium

Desulfurization agentfor steelmaking

Key raw materials

• Used catalysts• Boiler ash, etc.• Nickel compounds, etc.

Flue gas treatment equipment

Roasting ore

Melting/separating process

Molybdenum and nickel recovery process

Roasting process

Vanadium recovery process

Roasting furnace

Ferroalloy electric furnace

Auxiliary materials

Products

* Lime* Steel scraps, etc.

Ferro-molybdenum/ferro-nickel

Ferro-vanadium

Desulfurization agent for steelmaking

Key raw materials

* Used catalysts* Boiler ash, etc.* Nickel compounds, etc.

Flue gas treatment equipment

ばい焼鉱

溶解分離工程

モリブデンニッケル回収工程

ばい焼工程

バナジウム回収工程

ばい焼炉

合金鉄電気炉

副原料

製品

・石灰・鉄屑等

モリブデンニッケル合金鉄

フェロバナジウム合金鉄

製鉄用脱硫材

主原料

・使用済み触媒・ボイラー灰等・ニッケル化合物等

排ガス処理設備

JFE Group’s Recycling Businesses

Toyama• Rare metal recovery from spent catalysts

Kurashiki (Mizushima)• Waste gasifying and melting plant• Waste wood carbonization plant

Fukuyama• Waste plastic recycling plant• RPF manufacturing• RDF gasifying power generation

Hiroshima• Packaging plastic wastes sorting

and baling plant* Joint venture with Mitsubishi

Heavy Industries Group

Sendai• Plastic materials recycling plant• Pallet manufacturing plant• Florescent tube recycling plant• Wood waste recycling plant• Packaging plastic wastes sorting and baling plant

Yokohama• Fluorescent tube recycling• Yokohama clean recycling facilities

(waste plastics, woodchips, scrap metals)• Packaging plastic wastes sorting and baling plant

Kawasaki (Ogishima)• Waste plastic recycling plant

Kawasaki (Mizue)• Waste plastic recycling plant• NF Board® (concrete form panels) manufacturing

made of recycled plastic• PVC recycling• Waste PET bottle recycling• Used home electric appliance recycling• Cans and PET bottles sorting and baling plant

Chiba• Waste gasifying and melting plant• Food waste recyclingEast Japan Works

West Japan Works

●●

● ● ●

● ●●●

Toyama• Rare metal recovery from spent catalysts

Kurashiki (Mizushima)• Waste gasifying and melting plant• Waste wood carbonization plant

Fukuyama• Waste plastic recycling plant• RPF manufacturing• RDF gasifying power generation

Hiroshima• Packaging plastic wastes sorting and baling plantJoint venture with Mitsubishi Heavy Industries Group

West Japan WorksEast Japan Works

Sendai• Plastic materials recycling plant• Pallet manufacturing plant• Florescent tube recycling plant• Wood waste recycling plant• Packaging plastic wastes sorting and baling plant

Yokohama• Fluorescent tube recycling• Yokohama clean recycling facilities(waste plastics, woodchips, scrap metals)• Packaging plastic wastes sorting and baling plant

Kawasaki (Ogishima)• Waste plastic recycling plant

Kawasaki (Mizue)• Waste plastic recycling plant• NF Board® (concrete form panels) manufacturing made of recycled plastic• PVC recycling• Waste PET bottle recycling• Used home electric appliance recycling• Cans and PET bottles sorting and baling plant

Chiba• Waste gasifying and melting plant• Food waste recycling

The year ended March 31, 2009Amount of fluorescent tubes processed(Total tube length is calculated in terms of straight 40W tubes)20 million tubes

The year ended March 31, 2009Amount processed of the four regulated types ofdiscarded home electronic appliances820,000 products

Year ending March 31, 2010:Container and packaging plastic(Other plastics)Amount successfully bid on114,000 tons

Roasting ore

Melting/separating process

Molybdenum and nickel recovery process

Roasting process

Vanadium recovery process

Roasting furnace

Ferroalloy electric furnace

Auxiliary materials

Products

* Lime* Steel scraps, etc.

Ferro-molybdenum/ferro-nickel

Ferro-vanadium

Desulfurization agent for steelmaking

Key raw materials

* Used catalysts* Boiler ash, etc.* Nickel compounds, etc.

Flue gas treatment equipment

Recovery Process Overview

Recycling Different Used Products

Recovering Rare Metals from Waste Catalysts

Container and packaging plasticfor the year ending March 2010(Other plastics)Amount successfully bid on

114,000tons

Amount of fluorescent tubes processedfor the year ended March 2009(Total tube length is calculated in terms of straight 40 W tubes)

20million tubes

Amount processed of the four regulated types of discarded home electronic appliancesfor the year ended March 2009

820,000products

�8JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 40: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

JFE is developing and expanding the use of steel manufacturing byproducts, taking advantage of their unique function in restoring coastal ecosystems, in order to protect marine environments

tiny irregularities on the surface that make it easy for coral to adhere and grow.

JFE has also developed technology for using steel byproducts to create coral settlement devices as a growing base for coral. Focusing on the fact that coral larvae naturally try to attach themselves to small holes and crevices in rocks, these coral larvae substrates are to be installed just before a coral bloom, and then a large number of larvae will eventually take up residence.

Coral reefs are declining worldwide due to bleaching events, which are triggered by higher sea temperatures resulting from global warming. JFE Steel is developing technologies to help restore coral reefs.

Marine Block® is an artificial reef material developed by JFE, which consists of calcium carbonate produced by a chemical reaction between CO2 gas emissions and calcium in steelmaking byproducts.

This calcium carbonate is also found in seashells and coral, with the characteristics of

Devices with coral larvae attached are placed on Marine Block®

Four years after installation, the coral has grown to a diameter of 26cm and is expected to reproduce.

Coral settlement devices (basic shape developed by Associate Professor Okamoto at the Tokyo University of Marine Science and Technology)

Coral restored on a Marine Block® and native fish

Restoring Marine Environments with a Steel Byproduct

Restoring Marine Environments

Restoring Coral Reefs with Marine Blocks®

�9 JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 41: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

Ships with no cargo carry ballast water (seawater) to maintain their balance. When they enter a port and take on cargo, they release the ballast water, which includes plankton and other organisms the ship took in at the port of unloading. Therefore, such releases impact marine ecosystems around the port of loading, and have become an international problem.

To address this problem, the JFE Group has applied its water treatment, mechanical, and shipbuilding technologies to develop a high- performance ballast water treatment system that is compact and easily installable inside a ship.

Moving forward, JFE will contribute to maintaining marine ecosystems by receiving orders and sales for the bal last water management system.

JFE is working to reduce CO2 and increase the basic productivity of oceans to improve marine ecosystems, thus creating rich marine environments. The company is also developing technologies to restore them.

For example, the company is participating in a proof-of-concept, industry-government-academia partnership working toward the realization of a low-carbon society. This partnership, which is sponsored by Japan’s Ministry of Economy, Trade and Industry, has created a forest of seagrass using steel manufacturing byproducts off the coast near Kawasaki to measure and assess the volume of CO2 it can absorb.

Coral reef restoration technology using Marine Blocks® has received a lot of media coverage not only in Japan but also abroad. I hope that more people will come to know about our proprietary technologies in this area and that this will allow us to help protect the global environment.

Seawater tank (ballast tank)

Pumping ballast water into the ballast tanks (when unloading at ports)

Removal oflarge plankton

Seawater filter

Seawater inlet

Backwash water outlet

Cavitationequipment

Sterilization usingoxidizing agents

Sterilizationusing cavitation

Chemicals

Seawater inlet

Backwash water outlet

Seawater tank (ballast tank)

Pumping ballast water into the ballast tanks (when unloading at ports)

Removal oflarge plankton

Seawater filter

Seawater inlet

Backwash water outlet

Cavitationequipment

Sterilization usingoxidizing agents

Sterilizationusing cavitation

Chemicals

Seawater tank (ballast tank)

Ballast Water Processing System

Voice from the Frontline of Coral Restoration

Kelp, a common variety of seaweed, growing on a Marine Block®

Kumi Oyamada (Right)Slag & Refractories Research Department, Steel Research Laboratory, Slag Business Planning & Control Department

Ship Ballast Water Treatment SystemHelping to maintain marine ecosystems

Using Steel Byproducts to Create a Forest in the SeaContributing to the development of a low-carbon society

�0JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 42: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

1997

1998

1999

Social TrendsEnvironmental Protection & Energy Saving Activities at Works

2000

2001

2002

2003

2004

2005

2006

2007

2008

•Kyoto Conference of the Parties of the United Nations Framework Convention on Climate Change (COP3): Adoption of Kyoto Protocol

•Establishment of Voluntary Action Program by Keidanren•ISO 14001 certification of Keihin Works•ISO 14001 certification of Mizushima (Kurashiki) Works and Utsunomiya

Works (LSI plant)

•Establishment of Voluntary Action Program by Keidanren•ISO 14001 certification of Chiba Works

•ISO 14001 certification of Engineering Division•ISO 14001 certification of Chita Works•ISO 14001 certification of Maizuru Shipyard

•Establishment of Environment & Energy Liaison Center•ISO 14001 certification of Tsu Shipyard

•Start of JFE Group (September)•ISO 14001 certification of Ariake Shipyard•ISO 14001 certification of Innoshima Shipyard

•Start of 5 operating companies (April)•Start of Environmental Management Network System•ISO 14001 certification of Keihin Shipyard

•Overhaul of the environmental management system

•Startup of environmental abnormality prevention system (Chiba)

•Commencement of Environmental Information Publication System (Keihin)

•Commencement of Environment & Energy Information Management System

•Implementation of Law concerning the Promotion of the Measures to Cope with Global Warming

•Implementation of Law concerning Special Measures against Dioxins

•Implementation of PRTR Law

•Implementation/revision of 6 laws related to establishment of recycling-based society

•Implementation of Soil Contamination Control Law

•Effect of Kyoto Protocol•Revision of Law Concerning the Promotion of the Measures

to Cope with Global Warming

•Enforcement of the revised Energy Saving Law

•Commencement of First Commitment Period of the Kyoto Protocol

General Measures

•Establishment of Voluntary Action Program by Keidanren•ISO14001 certification of Keihin Works•ISO14001 certification of Mizushima (Kurashiki) Works and Utsunomiya Works

(LSI plant)

History of Environmental Measures in JFE Group

�� JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

Page 43: Environmental ConservationActivities at JFE Urban Development Reducing Environmental Loads through Products and Technologies R&D of Environmental Conservation Technology JFE’s Technologies

�. JFE Efforts regarding Climate ChangeEfforts to address climate change issues remain the most important criteria for evaluating the JFE Group’s social and environmental activities, given that its core businesses are in energy-intensive industries. It is highly likely that obligations to further reduce greenhouse gases within a post-Kyoto Protocol international framework will become more rigorous at the next climate change meeting in December 2009, and an even stricter greenhouse gases emissions cap will be imposed on energy-intensive industries. As a result, such business activities may be exposed to significant regulatory risk, and this in turn may adversely affect their financial position over the mid term.

From this perspective, my opinion is that JFE Steel has made a solid effort, taking into consideration its exposure to higher climate change risk. Consistent with the Group’s Corporate Vision of “contributing to society with the world’s most innovative technology,” JFE Steel has leveraged its advanced technical capabilities to reduce CO2 emissions at the production stage. The company has also introduced Coke Dry Quenching (CDQ) and Blast Furnace Top Pressure Recovery Turbine Generation waste heat/pressure recovery technologies, as well as other new energy-saving technologies such as shaft furnaces, regenerative burners, and Super-SINTER™. As a result, the company has managed to reduce its CO2 emissions by 8.9% and unit emissions by a significant 19%, compared to the year ended March 31, 1991, despite a 13% increase in crude steel production.

JFE Steel uses its technical capabilities for the benefit of other countries as well. Through its participation in COURSE 50, a Japan Iron and Steel Federation project pertaining to CO2 emissions reduction technology, the company has worked to develop physical adsorption and other innovative technologies, and actively promotes technology transfers to developing countries.

On the financial front, JFE Steel is strengthening its financial position to secure higher profitability in a low-carbon society by offering a broad range of high-value-added products. JFE Steel is clearly demonstrating its strategy of positioning itself to meet future demand in the market for low-carbon products.

Nevertheless, JFE Steel still needs to do more to reduce its energy consumption. The company reported a mere 7.7% reduction compared to the year ended March 31, 1991, falling short of the 10% reduction target indicated in the Japan Iron and Steel Federation’s Voluntary Action Program. If the company can apply its outstanding technical strengths to further reduce energy consumption through innovation, then it will be rewarded with greater market competitiveness. Therefore, I expect JFE Steel to forge ahead with its advances in carbon management through technology development.

�. Information DisclosureThe Group has reduced by about 20–30% the volume of both its 2009 Business Report and 2009 Environmental Sustainability Report (Web information). Some changes, such as eliminating large photos, don’t give the impression that the reports are skimping on content. However, the social information provided, which always has been somewhat sparse, fails to demonstrate any real improvements in disclosure, barely managing to maintain the level of the previous year.

If we are to realize a sustainable society, then along with focusing on environmental considerations we must also avoid neglecting social considerations. I hope to see the Group make renewed efforts to improve the quality of social information in order to more clearly demonstrate its consideration for socially vulnerable groups both inside and outside the organization.

�. Radical Change in Thinking about Fair TradeAs discussed in this Business Report, the JFE Group was again reported to have engaged in unfair trade practices last year. The Group’s serious efforts towards compliance education over the past several years do not seem to have been sufficient to sweep away the negative legacy of the past. Although the Group was able to implement meaningful remedial action as soon as its price cartel for galvanized steel sheet was revealed, it must continue to thoroughly reinforce awareness-raising practices throughout the Group if it is to reduce the risk of future incidents and regain society’s trust.

Yoshinao KozumaProfessor, Faculty of Economics, Sophia University

JFE Group Social and Environmental EffortsTHIRD-PARTY COMMENTS

��JFE GROUP ENVIRONMENTAL SUSTAINABILITY REPORT 2009

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1-5-1 Marunouchi, Chiyoda-ku, Tokyo 100-6527http://www.jfe-holdings.co.jp/

+81-3-3217-3133 [email protected]

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Corporate Planning Department

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